J&J Sued for Misleading Auris Investors Over 2019 Buyout

Johnson & Johnson was accused in a lawsuit of falsely promising billions of dollars in future payments to Auris Health Inc. investors when J&J acquired the company last year.

Fortis Advisors LLC alleged Monday that J&J executives deceived investors when they promised future payments based on the performance of Auris robotic systems designed to perform safer and more efficient lung biopsies.

J&J officials “violated the parties’ merger agreement with the specific objective of defeating the former stockholders’ right to billions of dollars” in so-called earn-out payments, according to the Delaware Chancery Court suit.

Kim Montagnino, a J&J spokesman, didn’t immediately ...