Boston Scientific Announces Favorable Court Ruling Dismissing Securities Fraud Case
August 9, 2011 — Boston Scientific Corp. said the U.S. Court of Appeals for the First Circuit has affirmed the dismissal of a securities fraud case in connection with the 2004 recall of one of the company’s coronary stent systems.
The U.S. District Court for the District of Massachusetts had previously dismissed the case, which had been filed by the Mississippi Public Employees’ Retirement System.
"We are pleased with the court's decision," said Tim Pratt, executive vice president, chief administrative officer and general counsel for Boston Scientific. "The company has made significant progress in reducing its legal exposure in the last 24 months and will continue to vigorously defend itself against allegations of this type."
The Mississippi Public Employees' Retirement System is a pension fund and purchaser of Boston Scientific stock. The system alleged company executives both withheld material information about problems with the Taxus Express2 paclitaxel-eluting coronary stent and decisions addressing those problems. It also alleged the company made misleading positive statements, in violation of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 78j(b) and 78t(a), and the attendant rules and regulations.
The plaintiff alleged these false and misleading statements caused the market price of the company's securities to be artificially inflated, harming investors.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties.
For more information: www.bostonscientific.com
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