Boston Scientific to pay $600M to settle suit over Guidant deal
Boston Scientific will pay $600 million to settle a fight over its 2006 purchase of Twin Cities-based Guidant Corp.
News of the settlement sent shares of Boston Scientific up nearly 12 percent in after-hours trading late Tuesday afternoon.
Boston Scientific beat out rival Johnson & Johnson to take over Guidant, paying $27 billion. It turned out that Guidant brought with it a slew of legal and other problems. Even so, Johnson & Johnson sued for $7 billion, accusing Guidant of welching on a prior merger agreement with J&J.
Under the settlement, Johnson & Johnson will dismiss the suit, and Boston Scientific won't accuse J&J of patent violations involving a family of products.
Boston Scientific has about 5,000 Minnesota employees and says the settlement is in the best interests of the company and shareholders.
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