Judge narrows fight over Guidant

A US court dealt a blow to Johnson & Johnson in its $5.5 billion lawsuit over the sale of Guidant Corp. to Boston Scientific Corp., dismissing some claims and allowing only part of the case to proceed.

The ruling, made public today, throws out the case against Abbott Laboratories Inc. but allows J&J to go ahead with its claim against Guidant for breach of contract.

J&J last year lost its battle to acquire Guidant, a medical device maker, to Natick-based Boston Scientific. It sued Guidant, Boston Scientific, and Abbott, which played a secondary role in the deal, in September.

"This case arises from a proposed merger that left plaintiff Johnson & Johnson with a broken heart," US District Judge Gerard Lynch in New York wrote.

Lynch granted a motion by Abbott to dismiss it from the lawsuit. He also granted dismissal of a claim against Boston Scientific for interference with contract and a claim against Guidant for breach of an implied duty of good faith and fair dealing.

But he denied requests from Boston Scientific and Guidant for dismissal of J&J's claim against Guidant for breach of contract.

The judge said he let that claim stand because a merger agreement between J&J and Guidant "‘makes clear that Guidant was not allowed to solicit bids."’

Guidant had originally agreed to be acquired by J&J. It paid J&J a $705 million to walk away from the deal. But J&J claimed it was entitled to further damages.

J&J said it would continue to pursue the case.
(Reuters)