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US: Johnson & Johnson seeks $5.5B in damages 10 years after failed buyout

 |  November 20, 2014

The world’s number-one healthcare product seller, Johnson & Johnson, is reportedly seeking damages 10 years after its failed buyout of Guidant Corp.

Reports say the company has taken legal action against Boston Scientific, which ultimately won the bidding to acquire Guidant in 2004, on claims Boston Scientific broke a contract with Johnson & Johnson. J&J is now seeking up to $5.5 billion in damages.

J&J had agreed to acquire Guidant for $21.5 billion, but an unsolicited bid from Boston Scientific lead Guidant to accept its ultimate offer of $27.5 billion. Guidant paid J&J a $705 million termination fee, reports say.

Now, J&J argues that Boston Scientific unfairly interfered with its initial agreement with Guidant, and claims Guidant disclosed confidential business information to Boston Scientific.

The case is set to run through November 25 then pick up against on December 15, according to reports.

Full content: Bloomberg

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