Xarelto Defendants Announce A Whopping $775M Settlement

Xarelto Defendants Announce A Whopping $775M Settlement

Introduction

A favorable settlement amounting to a total of $775 million was announced on Monday by Bayer AG and Johnson & Johnson’s subsidiary Janssen Pharmaceuticals to resolve over 25,000 lawsuits pending in the U.S. courts over Xarelto, their blockbuster blood thinner.

The drug is prescribed mainly to prevent and treat blood clots and lower the risk of deep-vein thrombosis (DVT), pulmonary embolism, and stroke; it was jointly developed by the two defendants who have agreed to settle the lawsuits without admitting liability under the agreement. Allegations hurled by the plaintiffs included uncontrollable and irreversible bleeding leading to severe injuries and even death. Claims also included failure to warn doctors and patients about the bleeding risks, claiming the injuries could have been prevented had adequate warnings been provided.

The settlement will resolve both state and federal cases. As per  the court papers, the cost will be split equally between the two defendants. A statement was released by Bayer stating, ‘’the settlement allows the company to avoid the distraction and significant cost of continued litigation.” Also, some of Bayer’s settlement costs will be offset by liability insurances. J&J announced through a statement, it continued to believe in the safety of Xarelto. A detailed settlement document had not been filed as of Monday midday.

Other than the state filed cases, federal cases belong to multidistrict litigation, MDL No. 2592; In Re: Xarelto (Rivaroxaban) Products Liability Litigation, presided by Judge Fallon in the Eastern District of Louisiana.