J&J Versus Auris: Robotics Fallout With Big Implications For M&A

J&J’s “pants down” moment with Auris could permanently change how medtech M&A is conducted. Build-to-buy arrangements, which leave companies’ destinies in the hands of their owners, are likely to replace current earn-out models.

• Source: Shutterstock

On 4 September 2024, Vice Chancellor Lori Will of the Court of Chancery – one of Delaware’s three constitutional courts and home to the majority of company v. company litigation in the US – published a 145-page opinion arguing that Johnson & Johnson breached the terms of its 2019 merger agreement with Auris Health.

Central to the 2019 agreement was a series of promises made by J&J to Auris Health. As part of the...

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