J&J gets $6m settlement in counterfeit medical device case

Johnson & Johnson has agreed a $6m settlement with an Illinois-based company it has accused of selling counterfeit and expired Ethicon surgical devices.

Last October, Advanced Inventory Management Inc (AIM) – which operates online as eSutures.com – was barred from using Ethicon’s trademarks or claiming association with Ethicon by US District in a Chicago court.

In the latest development, Judge Dow dismissed the lawsuit after the two parties agreed to the settlement, which bars eSutures.com from buying, selling or distributing any J&J or Ethicon products on a permanent basis.

The lawsuit had accused the company of selling products that had falsified trademarks and were bacterially contaminated and defective. Documents claimed that up to 6,000 counterfeit devices may have ended up being used in patients, putting them at risk of serious infections.

Ethicon won a temporary restraining order against AIM in June 2020 in the lawsuit. It was seeking $25m in punitive damages from each of the defendants named in the action, which names AIM and four executives at the company.

According to its website, eSutures.com offers to buy surplus inventory from other suppliers including “in-date, short dated and expired products in full selling units, open boxes and even loose, individual items.”