Devicemaker Boston Scientific Corp., Natick, Mass., will pay Cordis Corp., a Johnson & Johnson-owned company, $1.7 billion to settle two lawsuits over claims that each company violated the other's patents for cardiovascular stent technology.
The agreement called for Boston Scientific to pay $1 billion to Cordis by close of business yesterday. The balance of the settlement will be paid during the first week of January 2011, according to news releases from both companies.
“We believe today's settlement—while substantial—is in the best interest of the company and its shareholders,” said Boston Scientific President and CEO Ray Elliott. “It resolves major litigation without exposing Boston Scientific to the uncertainties of a jury trial and a potential damages award that was impossible to predict.”
The agreement settles two ongoing lawsuits that incorporated three different complaints dating back to 2003. In the first case Cordis claimed that Boston Scientific's Express, Taxus Express and Liberte stents infringed on two of its patents. Boston Scientific countersued claiming that Cordis' Cypher, BX Velocity and Genesis stents infringed on one of its patents. Two juries found that both companies were guilty of patent infringement and damages hearings were scheduled for sometime this month. Those hearings have been canceled.
The second case involved claims by Cordis that a fourth Boston Scientific stent, the Taxus Liberte, infringed on one of its patents. That trial, set for September, has also been canceled.