Bausch Investors Lose Bid to Block Spinoff of Eye-Care Unit (1)

Bausch Health Cos. investors lost a legal fight to block the planned spinoff of the health-care firm’s valuable eye-care business, which they alleged was an improper shifting of assets to protect the company from securities lawsuits.

Superior Court Judge Margaret Goodzeit in Somerset County, New Jersey, concluded Tuesday it wouldn’t be proper to her to intervene because the spinoff wasn’t imminent. No date for the move has been set. Still, the judge said the company must give investors 14 days notice if it decides to not ask shareholders to vote on the transaction.

More than 50 funds that own Bausch ...