Guidant Settles 4000 Claims to the Tune of $195 Million

By Richard Seward

Published on July 30, 2007

In settling the claims, the Massachusetts-based manufacturer of implantable heart devices avoided court proceedings that were to begin on July 27th. Guidant is alleged to have been aware that, as early as 2002, its defibrillators were potentially defective, but continued with their manufacture to protect potential earnings.

Guidant Corporation began recalling its ICDs in 2005 – prior to its acquisition by Boston Scientific – citing concerns over a faulty insulation seal that could potentially admit moisture and short-circuit the device.

In all, there have been 7 deaths attributed to defective Guidant defibrillators. Since the recall controversy, profits from the sale of ICDs have plummeted more than $400 million. Guidant still faces additional lawsuits that are pending in various state courts.

The July 14th settlement does not constitute Guidant's admission of guilt since the lawsuit never made it to trial. Additional details of the settlement remain undisclosed.

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