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news.Johnson & Johnson has launched legal proceedings against Boston Scientific and Abbott Laboratories, alleging that the companies illegally shared information in order to beat J&J to the acquisition of heart device maker Guidant earlier this year.
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Seeking damages of around $5.5 billion, J&J claims that Guidant, now a division of Boston Scientific, broke a merger agreement with J&J by allowing Abbott Laboratories access to confidential information. Abbott provided financing support and agreed to buy a Guidant division to ease regulatory concerns.
As a result, Boston Scientific was able to provide an offer for Guidant that did not require an antitrust review. J&J claims Guidant’s breach of its agreement, as well as Boston Scientific and Abbott’s interference, deprived the company of the merger and caused it to suffer damages.
Both Boston Scientific and Abbott Laboratories commented that the lawsuit is without merit, and will fight the allegations in court.
Boston Scientific and J&J became locked in a bidding war for Guidant last year when J&J renegotiated the purchase price following product recalls, allowing Boston Scientific to step in.