When Johnson & Johnson informed Guidant Corp. that it was not required to go through with its planned $25.4 billion acquisition, the health care giant cited a series of events that have had “a material adverse effect” on Guidant. For example, the $47.3 billion consumer products giant referred to “previously announced product recalls at Guidant and the related regulatory investigations, claims and other developments as serious matters affecting both Guidant’s short-term results and long-term outlook.”
