Guidant continues to prove itself as Boston Scientific’s biggest legal headache. Reuters reports Boston Scientific (BSX) has agreed to pay a $30 million settlement to bring two-year civil lawsuit, and with it allegations that Guidant knowingly sold defective defibrillators used in Medicare patients, to an end.
BSX bought Guidant in 2006. Guidant sold the defibrillators, which they allegedly knew could short-circuit, thus becoming ineffective at fixing irregular heartbeats, from 2002-2005.
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Guidant did not fully disclose to doctors and the FDA the problems with its heart devices until May 2005 after it was contacted by a New York Times reporter, according to the government’s suit.
James Allen, a patient who received one of the devices and who initially brought the civil suit under the anti-fraud False Claims Act, will receive $2.25 million as a whistleblower, the (U.S. Department of Justice) said.
For more on the former Guidant drama, click here.