US-based medical equipment manufacturer Boston Scientific has agreed to resolve a lawsuit with Johnson & Johnson (J&J), filed against it in 2006 in relation to the acquisition of Guidant.
Under the settlement agreement, J&J, which sought about $7bn in damages, has agreed to permanently dismiss its action without acknowledgment of liability by Guidant.
Boston Scientific will pay around $600m to J&J, which will be excluded from its non-GAAP measures of adjusted income that were previously announced.
The company has also agreed not to bring patent infringement or other claims related to J&J’s SMART, SMART Control and SMART Flex stent products.
Boston Scientific, executive vice-president, chief administrative officer, general counsel and secretary Tim Pratt said: "We feel this settlement is in the best interests of the company and its shareholders.
"We are pleased to end this longstanding litigation between Guidant and Johnson & Johnson, and to continue focusing on delivering innovative products and solutions to physicians and patients."
Guidant develops and manufactures artificial cardiac pacemakers, implantable cardioverter-defibrillators, stents, and other cardiovascular medical products.