Boston Scientific Agrees to $195 Million Settlement for Recalled Heart Monitoring Devices

By Daniel Hawn

Published on July 17, 2007

Boston Scientific President and CEO Jim Tobin and lead plaintiffs' attorney Charles S. Zimmerman are both pleased with the settlement, which was achieved during mediation with U.S. Magistrate Judge Arthur J. Boylan in Minneapolis.

Since June 2005, Guidant has issued recalls or safety warnings for nearly 300,000 pacemakers and defibrillators. The company has been criticized for failing to publicly disclose the problems in a timely manner.

After acquiring Guidant in April 2006 for $27 billion, Boston Scientific inherited approximately 1,430 lawsuits involving the implantable heart devices. As of March 31, the company had allotted $732 million to cover expenses related to the lawsuits. The $195 million awarded in the July 13 settlement is about one-fourth the amount set aside by the company. Boston Scientific has not disclosed the reason for the discrepancy.