NEW BRUNSWICK (dpa-AFX) - Boston Scientific Corp. (BSX) announced the settlement of the breach of merger agreement lawsuit brought by Johnson & Johnson (JNJ) against Guidant Corp., stemming from its acquisition of Guidant.
Boston Scientific has agreed to make aggregate payments totaling $600 million to Johnson & Johnson, which had agreed to permanently dismiss its action without acknowledgment of liability by 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.
Boston Scientific expects to record a pre-tax litigation-related charge of approximately $600 million within its fourth quarter 2014 results as a recognized subsequent event. This charge will be excluded from its 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.
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