J&J Loses Bid to Nix Fraud Lawsuit Over $3.4 Billion Auris Deal

Johnson & Johnson must face fraud litigation over its Ethicon unit’s $3.4 billion acquisition of Auris Health Inc., which was developing a surgical robot with blockbuster potential, a Delaware judge ruled.

Vice Chancellor Lori W. Will let the case move forward Monday in Delaware Chancery Court with claims that Ethicon duped Auris investors into making billions in post-deal payments contingent on unachievable regulatory and sales milestones related to the “iPlatform” surgical system.

Will advanced allegations that Ethicon misled the former Auris shareholders about the way it would allocate resources between the iPlatform and another surgical robot in its pipeline, then ...