- Look Ahead: Markets Count Down to US Jobs Report
- FHA to Toughen Mortgage Rules in Lenders Crackdown
- Obama to Send More Troops; Seeks Afghanistan Exit
- GM Removes CEO Henderson; Whitacre is Interim Chief
- Who Were the Biggest Winners And Losers This Year?
- GE, Comcast Complete Deal Over NBC Universal: Source
- US May Raise Rates Before Jobs Recover: Fed's Plosser
- Case Closed but Woods Scrutiny Continues
- Weak Dollar Forces Mercedes to Build More in US
- Unemployment to Peak at 10.5%: Moody's Economist
- 8 Stocks to Gain on Obama's Afghan Plan: Analysts
- BofA On Proposed Changes In The Housing Bailout Program
- The Future of The Media Landscape
- November Auto Sales Muddle Along
- Busch: What Obama Won't Say Tonight
- Stick with Equities—Avoid Emerging Markets: Laszlo Birinyi
- Pfizer Chomps On A Carrot
- Predictions 2010: Technology
MOST SHARED
- Keeping America Great
- Kohlberg Kravis Bidding for Morgan Stanley's CICC Stake
- GE, Comcast Complete Deal Over NBC Universal: Source
- Australia Regulator Opposes Caltex-Exxon Deal
- Cisco Has 84% of Tandberg, Won't Extend Bid
- Toyota Takes Lead Position in Canada in November
- Hyundai's US Auto Sales Jump 46% in November
- Australia Parliament Rejects Carbon Trade Laws
Text Size 
A federal judge has ruled that some product-liability claims against Boston Scientific over implantable heart defibrillators can proceed, rejecting the medical device maker's motions to dismiss them.
Guidant Corp., which Boston Scientific [BSX
Loading...
()
] bought last year, continued to sell heart rhythm-management devices after learning of possible defects, Judge Donovan Frank of the U.S. District Court in Minnesota said in a ruling Tuesday.
"This case concerns the issues of whether, how and to whom information was shared ... about a device with an alleged defect," Frank wrote in his ruling.
Boston Scientific, which bought Guidant to acquire its portfolio of heart devices, recalled more than 100,000 of the products between 2005 and 2006.
Guidant recalled more than 100,000 of its heart devices between 2005 and 2006.
"We are fully prepared to take the bellwether cases to trial and remain confident that when juries look into the individual facts, they will side with us," a Boston Scientific spokesman said. "Guidant defibrillators continue to be among the most reliable in the industry."
Boston Scientific, the No. 3 maker of the implantable heart devices after Medtronic Inc. and St. Jude Medical Inc. , has estimated damages and costs to cover legal expenses will be $732 million.
"Clearly, Boston Scientific knew they'd be facing litigation ... and in any litigation you're going to have wins and losses," said David Katz, chief investment officer at Matrix Asset Advisors, which owned 2.3 million Boston Scientific shares as of March 31, 2007. "You have to take them in stride."
Katz said the most important issues for the company over then next three to 12 months are progress in resolving a warning letter with the U.S. Food and Drug Administration, a turnaround in the markets for implantable cardioverter defibrillators, better known as ICDs, and drug-eluting stents, and cutting costs.
Michael Barr, an industry analyst with Victory Capital Management, added, "Boston Scientific definitely wants to get its debt levels down ... this is just one more thing that moves this company toward cost cutting."
Boston Scientific shares were down 5 cents to $16.00 in early New York Stock Exchange trade.
Print
Email
- Will the Fed raise rates? Will the dollar continue its slide? CNBC experts weigh in on the year ahead.
- Goldman Sachs has forbidden employees from gathering in private holiday parties of 12 or more.
- Do you have what it takes to run your own business? Ask yourself these questions.
- Heavily armed pirates in Somalia have set up a sort of stock exhange to fund their hijackings.
- Since its launch in 1998, Google has become a primary force on the Internet. How much do you know about the company?
- A famed author has written all his work on an old typewriter that is now up for auction. The NYT reports.
Data is a real-time snapshot *Data is delayed at least 15 minutes