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Print Edition StoriesFriday, November 6, 2009
Boston Scientific pays $296M to settle Guidant allegations
By Chris Newmarker
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Medical device maker Boston Scientific Corp. plans to spend $296 million to settle a U.S. Justice Department investigation into the company’s alleged failure to report possible defibrillator defects.
Natick-based Boston Scientific (NYSE: BSX) said its Guidant unit will plead guilty to two misdemeanor charges related to failure to include information in reports to the U.S. Food and Drug Administration.
Investigators at the U.S. Attorney’s Office in Minneapolis investigated product advisories issued by Boston Scientific’s Guidant Corp. unit in 2005, a year before Boston Scientific’s $27 billion acquisition of the company.
Guidant has been criticized for not issuing warnings quickly enough about defibrillator defects. In 2007, Boston Scientific agreed to spend up to $240 million to settle heart patient lawsuits over the issue.
The company is now recording a third-quarter loss of $94 million, or six cents per share, versus a profit of $250 million, or 13 cents per share.
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