J&J, Boston Scientific Lawsuit Over Guidant Deal Coming to a Close

Johnson & Johnson’s eight-year pursuit of damages from Boston Scientific over a failed acquisition now lies in the hands of a federal judge, after lawyers for both companies made final presentations Wednesday in New York federal court.

Following the final session of the nonjury trial, U.S. District Judge Richard Sullivan will decide what, if any, damages J&J will receive in its lawsuit over a bidding war for devicemaker Guidant. J&J is seeking more than $7.2 billion.

J&J offered $21.5 billion for Guidant in 2004, agreeing to sell a portion of Guidant's business to Abbott Laboratories to satisfy antitrust concerns. The deal included a “no-solicitation clause” that prevented Guidant from seeking better offers, although the company could entertain unsolicited bids.

Before the deal closed, Boston Scientific offered $25 billion for the company and also agreed to sell certain assets to Abbott, eventually purchasing Guidant for $27 billion. J&J accused Guidant of violating the agreement, saying Abbott would not otherwise have signed on to the deal and  Boston Scientific would have been unable to win what became a bidding war between the companies.

Boston Scientific maintains that Guidant did not knowingly violate the agreement. J&J received a $705 million termination fee and sued Guidant and Abbott in 2006, claiming breach of contract. Abbott has since been dismissed as a defendant. — Kellen Owings