Johnson & Johnson won partial relief from a nearly $1 billion damages award after Delaware’s Supreme Court overturned part of a ruling tied to its 2019 acquisition of surgical robotics company Auris Health. The high court unanimously set aside a portion of the September 2024 judgment that favored former Auris shareholders, who claimed Johnson & Johnson failed to adequately support Auris’ iPlatform technology and delayed regulatory approvals needed to bring products to market. As a result, total damages, including interest, are expected to fall by several hundred million dollars once recalculated.
Justice Abigail LeGrow ruled that the lower court erred in finding that Johnson & Johnson had an implied obligation to secure regulatory approval for certain devices by the end of 2021, while allowing most other findings to stand and ordering a reassessment of damages.
Johnson & Johnson said it is reviewing its options following the decision. The company stated, “We are pleased that the court reversed the trial court's improper substitution of its subjective views for the parties' carefully negotiated agreement on milestone regulatory requirements.” It added, “We are disappointed that the court did not similarly follow the language of the contract in permitting the remainder of the trial court's decision to stand.” Fortis Advisors, which represents former Auris shareholders, argued that the ruling still confirms breaches of the merger agreement. Philippe Selendy of Fortis said the decision showed Johnson & Johnson “inexcusably breached the merger agreement and deprived the world of Auris's transformative and life-saving surgical robot.”
