| Johnson and Johnson sues Boston Scientific and Abbott | Posted on 28/09/2006 in Medical Company Financials Johnson & Johnson has sued Boston Scientific and Abbott Laboratories over their joint takeover of Guidant earlier in the year.
The company is seeking $5.5 billion in damages from the companies as it alleges that confidential information was leaked about its partnership with Guidant when Boston Scientific succeeded in acquiring the medical devices company with Abbott.
While Johnson & Johnson was beaten to the purchase of Guidant by Boston Scientific and Abbott, some analysts have observed that the firm may have ended up better off, since there are worries about Boston Scientific's level of debt, as well as recent lawsuits concerning some of Guidant's products.
Allen Michel, an expert in mergers and acquisitions and expert in mergers and acquisitions and professor at Boston University, told the Associated Press: "There's no doubt that Boston Scientific is being squeezed financially in this acquisition, and they're being squeezed further by this lawsuit."
"The firm that has benefited the most from this acquisition has been Johnson & Johnson, only in that they didn't make the purchase," he added.
Both Abbott and Boston Scientific have branded the lawsuit as without merit. Additionally, Boston Scientific questioned why Johnson & Johnson would sue, some eight months after the merger.
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