More legal battles ahead for Guidant
By Erik Ricasa
Published on July 22, 2005
Guidant recalled the defibrillators due to a wiring defect that could cause them to malfunction. A different model of the same device was recalled earlier this year due to memory error problems.
In addition, several top executives at the company are facing securities fraud lawsuits after allegedly selling company stock at "artificially inflated prices" while knowing about equipment flaws.
A spokesperson for Guidant declined to comment on the lawsuits, but officials have previously stated that patient safety was "paramount" to the company.
In 2003, Guidant agreed to pay over $90 million and sign a corporate integrity agreement after pleading guilty to 10 criminal charges related to a failure to report defects in a device used to treat aneurysms.
The new problems come at an unfortunate time for Guidant, which is in talks to be aquired by Johnson & Johnson sometime this year.
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