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Getting ‘Hip’ to Medical Implant Failure – All Metal Artificial Hips Costing Patients, Insurers and Taxpayers Billions

rebneely — Wed, 28 Dec 2011 15:18:41 +0000

Medical and legal experts are estimating that the widespread failure of thousands of all-metal artificial hips could be costing taxpayers, insurers, employers and others in the neighborhood of billions of dollars in the coming years.

The medical implant failure, being deemed as the worst in decades, has resulted because of a group of products – not just one, and is expected to make health care costs increase dramatically overall.

To illustrate the problem, Thomas Dougherty was without a left hip for five months this year, mainly housebound, and watching his medical costs soar. When Dougherty did finally get the operation to replace the failed artificial hip, his pelvis fractured not long after.

The replacement hip was abandoned. After, a serious infection set in. The bills include $400,000 plus in charges related to hospitalizations, and nearly $30,000 in doctors’ bills.

The alleged metal-on-metal hips such as Dougherty’s are ones in which a device’s ball and joint are made of metal, These are failing at high rates within a few years instead of lasting 15 years or more, as artificial joints normally do. The wear of metal parts against each other is generating debris that is damaging tissue and, in some cases, even crippling patients. And let’s not forget the recovery time and general overall misery associated with a major operation.

In recent months, there have been over 5,000 lawsuits and complaints against makers of all-metal replacement hips. Insurers are informing patients that they plan to recover their expenses from any settlement money that patients receive. Medicare is also expected to try to recover its costs.

While his insurer has covered his bills so far, Dougherty was planning to sue his surgeon, who may have implanted the device incorrectly, and Johnson & Johnson, which produced his artificial hip, to help recoup some of the insurer’s money.

Until a recent sharp decline, all-metal implants accounted for nearly one-third of the estimated 250,000 hip replacements performed each year in the United States. Some 500,000 patients have received an all-metal replacement hip, according to one estimate. A new study found that no new artificial hip or knee introduced during a recent five-year period — implants that included some of the all-metal hips — were more durable than older devices, and 30 percent were worse.

One all-metal model has seen its share of troubles, and was implanted in 40,000 patients in the United States, and was recalled last year by the DePuy division of Johnson & Johnson. As of October, some 3,500 patients had filed a lawsuit involving that device.

There is no data on the number of all-metal hips that have failed prematurely in this country because the outcomes of orthopedic procedures are not formally tracked by the government or private companies.

Device producers have taken differing stances to covering patient expenses. Zimmer Holdings, which says its all-metal implants are safe, has settled hundreds of patient claims, lawyers involved in those cases say. Also, DePuy is covering costs related to the device it recalled last year, the A.S.R., or Articular Surface Replacement.

Wal-Mart in Compliance with Foreign Corrupt Practices Act?

rebneely — Fri, 09 Dec 2011 12:01:02 +0000

The best defense is a good offense? That’s what one may wonder after Wal-Mart Stores Inc. announced it is launching its own investigation into whether its policies, procedures and internal controls are in compliance with the Foreign Corrupt Practices Act; the legislation deals with anti-bribery.

The retail giant disclosed the investigation to the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC). The company has also enlisted the assistance of outside counsel and advisers to implement remedial measures, according to the filing.

Wal-Mart was quoted as having said in the filing, per the December 8^th law360.com article, “Wal-Mart Launches FCPA Compliance Probe”: “We cannot reasonably estimate the potential liability, if any, related to these matters. However, based on the facts currently known, we do not believe that these matters will have a material adverse effect on our business, financial condition, results of operations or cash flows.”

Wal-Mart spokesman David Tovar explained, per the article, that the company had, on a regular basis, instituted changes during the past few years to ensure its FCPA compliance programs were more effective. In coordination with that effort, Wal-Mart undertook a global review of its anti-corruption programs.

Tovar was quoted as saying: “We believe this is the right thing to do, in keeping with Wal-Mart’s core values and previous practices.” He also explained the investigation concentrates on “discrete incidents in specific areas”; as well, the company will disclose its findings to federal authorities.

The retail giant operates nearly 9,900 units in nearly 30 countries, including the U.S., Canada, Brazil, China, India, South Africa and Japan. In 2010, the company reported fiscal year 2010 sales of $405 billion, and it employs over 2 million people worldwide.

In recent years, amid the push for financial reform, the housing crisis and the economic downturn, the federal government has moved aggressively to put an end to foreign bribery, and that includes the executives, employees and third parties who allegedly make it possible.

Examples of companies who’ve faced backlash recently include pharmaceutical giant Pfizer Inc… The pharma giant paid over $60 million to settle investigations into whether it used bribes to secure business in foreign countries, according to The Wall Street Journal.

New York-based Pfizer said it had reached agreements in principle with the DOJ and SEC over “potentially improper payments” made by Pfizer and Wyeth Ltd. subsidiaries in connection with certain overseas sales activities.

As well, earlier in 2011, Johnson & Johnson paid U.S. regulators $70 million to settle bribery and kickbacks allegations in connection with overseas business.

The FCPA continues to have a profound impact on the way U.S. firms undertake business in at home and abroad. In 1998, the United States Congress and 33 other countries acted against the bribery of foreign officials, essentially government officials in an attempt to reduce corruption and money laundering through the global financial system. Corrupt political officials and those in high army office were targeted with a view to preventing government officials from exploiting their positions to gain unfair commercial advantage.

Goodwin Partner Joins Jenner & Block

marvins — Thu, 06 Jan 2011 19:46:47 +0000

Jenner & Block LLP, a premier US law firm with over 470 lawyers, confirmed that Wesley Fredericks, a former partner at Boston-based law firm Goodwin Procter, has joined the firm. Fredericks is now the new head of Jenner & Block’s corporate practice in its New York office. Fredericks has been a partner at Goodwin since 2008.

Fredericks said in an interview that the transfer was made possible by his former Dorsey & Whitney colleague, Richard Zakin. He added that Zakin, a lawyer-turned-headhunter, recruited him for the position at Jenner citing the firm’s remarkable reputation in the legal profession. “Jenner has a strong national platform and extraordinarily strong talent and strength of deal flow.”

Joseph Gromacki, the chair of the Jenner & Block’s corporate practice and co-chair of the securities practice, said that the firm aims to expand the corporate practice in its New York office, which is known to be litigation-heavy. He also expressed his excitement over Fredericks’ arrival. “Wesley’s practice was a very nice fit for us. We have a lot of [corporate] activity in New York, but not a lot of lawyer residents there.”

Fredericks’ areas of practices include corporate governance, finance, regulatory compliance and domestic and international M&A transactions. In the recent years, he has been part of some of the most significant cases in the legal industry. Fredericks was the representative of Thornburg Mortgage Inc. when the company was sold for $1.3 billion in convertible notes to a syndicate led by MatlinPatterson Global Advisers and an operating unit of Johnson & Johnson by a Scandanavian health products company, Svenska Cellulosa Aktiebolaget.

Morning Roundup

joshua — Wed, 25 Aug 2010 12:57:01 +0000

Good morning everyone! Today is Wednesday, August 25th. Here’s a quick recap of yesterday’s stories.

Reed Smith added leading IP strategist Marc Kaufman to its Washington D.C. office…

For four years running, Greenberg Traurig had more attorneys listed in the annual The Best Lawyers in America Guide than any other firm…

Barnes & Thornburg hired Peter Zura as a partner in its IP division…

DLA Piper gained a 5 person IP team from Hogan Lovells…

TEX-ABOTA Inc. named Richard A. Sayles, acclaimed courtroom lawyer, “Trial Lawyer of the Year”…

TEX-ABOTA Selects Acclaimed Courtroom Lawyer Richard Sayles as “Trial Lawyer of the Year”

joshua — Tue, 24 Aug 2010 13:47:18 +0000

TEX-ABOTA Inc., the Texas chapter of the American Board of Trial Advocates, has named Richard A. Sayles, co-founder of the Dallas trial law firm Sayles Werbner and acclaimed courtroom lawyer, “Trial Lawyer of the Year”.

During TEX-ABOTA’s recent board meeting in Houston, Mr. Sayles was selected for the honor, based on his work for clients in high-stakes and bet-the-company cases, and his dedication to the preservation of the American jury system. He will be recognized during an awards presentation during the TEX-ABOTA Annual Black Tie Dinner on October 16 at the Worthington Renaissance Hotel in Fort Worth.

Founded in 1958, ABOTA is one of the most respected trial lawyer groups in the nation. ABOTA and its affiliate members are dedicated to the preservation and promotion of the civil jury trial right provided by the 7th Amendment to the U.S. Constitution.

According to the article at Sayles Werbner’s web site, Mr. Sayles was quoted as saying: “Our firm has been fortunate to work on some pretty great cases this year, and I believe this honor is a reflection of the work we do together. To be selected by fellow lawyers whom I consider to be the best in the profession means more than I can say.”

Mr. Sayles’ recent courtroom work includes a $1.67 billion verdict on behalf of a unit of Johnson & Johnson in an intellectual property trial over patents used to produce a popular arthritis medication. The verdict is the top U.S. verdict of last year and the biggest intellectual property verdict in history. His work also includes a $3.7 million patent infringement verdict on behalf of Commil USA LLC against Cisco Systems Inc. in a dispute over wireless network technology.

Mr. Sayles is also named in The Best Lawyers in America, Lawdragon 500 Leading Lawyers in America, Texas Super Lawyers, Chambers USA, and Martindale Hubbell, among other listings of the country’s leading attorneys.

Sayles Werbner’s track record of success has earned the firm recognition among the top five “winningest” trial law firms in America by The National Law Journal. The firm’s numerous victories have been profiled in national publications like The New York Times and The Wall Street Journal. Sayles Werbner works with Fortune 500 companies, small businesses and individual clients.

Crowell & Moring – No Comment on Merger Rumors

joshua — Wed, 21 Oct 2009 23:09:14 +0000

Is Crowell & Moring in negotiations to merge with Folger Levin & Kahn? That’s the buzz, but the firm’s response has been noncommittal. Folger, which is based out of San Francisco and has an additional office in Los Angeles, has several overlapping practice groups and is in keeping with Crowell’s strategy for long term growth, which includesseeking opportunities to acquire smaller firms. With 56 attorneys and a client list including Citibank, Johnson & Johnson, and Hilton Hotels, Folger would appear to fit the bill nicely.