Boston Scientific Corporation announced
the settlement of the breach of merger agreement lawsuit brought by
Johnson & Johnson against Guidant Corporation, stemming from Boston
Scientific's acquisition of Guidant. In the lawsuit filed in 2006,
Johnson & Johnson alleged that Guidant breached the merger agreement
it had with Johnson & Johnson, and sought more than $7 billion in
damages. Guidant disputed the allegations. As a result of the settlement
agreement, Johnson & Johnson has agreed to permanently dismiss its
action without acknowledgment of liability by Guidant.
Additionally, Boston Scientific will make aggregate payments totaling $600 million to Johnson & Johnson. Boston Scientific expects to record a pre-tax litigation-related charge of approximately $600 million within its fourth quarter 2014 results as a recognised subsequent event. This charge will be excluded from Boston Scientific's non-GAAP measures of adjusted income that were previously announced. In connection with the settlement, Boston Scientific has also agreed not to bring patent infringement or other claims related to Johnson & Johnson's S.M.A.R.T., S.M.A.R.T. Control, and S.M.A.R.T. Flex stent products.
"We feel this settlement is in the best interests of the company and its shareholders," said Tim Pratt, executive vice president, chief administrative officer, general counsel and secretary. "We are pleased to end this longstanding litigation between Guidant and Johnson & Johnson, and to continue focussing on delivering innovative products and solutions to physicians and patients."
Additionally, Boston Scientific will make aggregate payments totaling $600 million to Johnson & Johnson. Boston Scientific expects to record a pre-tax litigation-related charge of approximately $600 million within its fourth quarter 2014 results as a recognised subsequent event. This charge will be excluded from Boston Scientific's non-GAAP measures of adjusted income that were previously announced. In connection with the settlement, Boston Scientific has also agreed not to bring patent infringement or other claims related to Johnson & Johnson's S.M.A.R.T., S.M.A.R.T. Control, and S.M.A.R.T. Flex stent products.
"We feel this settlement is in the best interests of the company and its shareholders," said Tim Pratt, executive vice president, chief administrative officer, general counsel and secretary. "We are pleased to end this longstanding litigation between Guidant and Johnson & Johnson, and to continue focussing on delivering innovative products and solutions to physicians and patients."
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