Feb 17 (Reuters) - Medical device maker Boston Scientific Corp on Tuesday said it has agreed to pay $600 million to Johnson & Johnson to settle a long-running breach of merger lawsuit over Boston Scientific’s 2005 acquisition of rival Guidant.
J&J, which agreed to permanently dismiss its action without acknowledgment of liability by Guidant, had sought more than $7 billion in damages after it lost a bidding war to Boston Scientific following an initial deal to buy Guidant for $21.5 billion.
The Guidant acquisition was widely considered by Wall Street to be a disaster for Boston Scientific as it left the company laden with debt and dealing with a host of Guidant product recalls. Many analysts believed J&J had dodged a bullet by losing Guidant.
Boston Scientific said it expects to record a pre-tax litigation-related charge of about $600 million in its fourth quarter 2014 results. (Reporting by Bill Berkrot; Editing by Grant McCool)