A Delaware judge has ordered Johnson & Johnson (J&J) to pay more than $1 billion to investors of Auris Health. The ruling came after J&J was found to have violated its merger agreement with Auris, a robotics company it acquired in 2019 for approximately $3.4 billion. According to the judge, J&J failed to provide Auris with the necessary resources to meet critical regulatory milestones, as outlined in the merger agreement.
The case revolves around the claim that J&J neglected its obligations to support Auris in achieving key objectives essential for regulatory approval. Investors argued that this failure led to financial setbacks, which ultimately devalued the acquisition.
This ruling marks a significant development in corporate merger disputes, highlighting the importance of post-acquisition support to meet regulatory and business goals. Johnson & Johnson, a global healthcare leader, faces growing scrutiny over its merger practices following this decision.