J&J Chips Away at Record $1 Billion Loss Over Robot Deal (2)

Johnson & Johnson persuaded Delaware’s top legal tribunal Monday to undo part of a $1 billion court loss over the company’s pledge to prioritize regulatory approvals for surgical robots it acquired in its $3.4 billion deal for Auris Health Inc.

The Delaware Supreme Court overturned one section of a wide-ranging ruling that held the pharmaceutical giant liable for its allegedly lackluster efforts to bring the medical devices to market. But the court upheld multiple key portions of the decision, which said J&J “almost immediately” breached contract provisions entitling former Auris investors to contingent deferred payments known as “earnouts.”

Although ...