Boston Scientific Corp. (BSX) to Settle Lawsuit
Boston Scientific Corp. has reached an agreement to pay upwards of $195 million to settle more than 4,000 lawsuits it faces tied to faulty heart defibrillators, the company said Friday.
The spate of lawsuits were filed against Guidant Corp., which has a cardiac rhythm management unit based in Arden Hills. The company ultimately recalled more than 100,000 defibrillators, a move that contributed to a downturn in the market for the devices.
Natick, Mass.-based Boston Scientific (NYSE: BSX - News) inherited the legal troubles when it acquired Guidant last year for $27.5 billion.
The first case was set to go to trial in Minneapolis at the end of the month.
Several cases filed against the company in Texas will not be covered in the settlement, according to a report by Bloomberg.
Boston Scientific, which makes medical devices, said in August of last year that it had set aside $381 million to cover legal expenses related to the charges. The company's cardiovascular division is based in Maple Grove.
"We are pleased by this resolution, which is in the best interest of all involved," said Jim Tobin, President and CEO of Boston Scientific. "It will better allow us to focus our time and resources on developing innovative products to serve physicians and patients."
Published July 13, 2007 by the Minneapolis / St. Paul Business Journal
The spate of lawsuits were filed against Guidant Corp., which has a cardiac rhythm management unit based in Arden Hills. The company ultimately recalled more than 100,000 defibrillators, a move that contributed to a downturn in the market for the devices.
Natick, Mass.-based Boston Scientific (NYSE: BSX - News) inherited the legal troubles when it acquired Guidant last year for $27.5 billion.
The first case was set to go to trial in Minneapolis at the end of the month.
Several cases filed against the company in Texas will not be covered in the settlement, according to a report by Bloomberg.
Boston Scientific, which makes medical devices, said in August of last year that it had set aside $381 million to cover legal expenses related to the charges. The company's cardiovascular division is based in Maple Grove.
"We are pleased by this resolution, which is in the best interest of all involved," said Jim Tobin, President and CEO of Boston Scientific. "It will better allow us to focus our time and resources on developing innovative products to serve physicians and patients."
Published July 13, 2007 by the Minneapolis / St. Paul Business Journal
Labels: Boston Scientific Corp., BSX
posted by Stock Administrator @ 8:11 PM
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