Boston Scientific, Guidant Settle Court Case for $30M

Boston Scientific Corp. and subsidiaries Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. have agreed to pay $30 million to settle a court case that arose over accusations that Guidant knowingly sold defective heart devices, the Justice Department announced Thursday.

The medical device manufacturer Guidant was accused of selling the defective heart devices to health care facilities between 2002 and 2005. The devices, which were implanted into Medicare patients, were used in patients at risk of cardiac arrest because of an irregular heartbeat.

“Medicare patients who depend on cardiac defibrillators should not have to worry about whether their devices will work when they are needed,” a news release quoted Stuart F. Delery, assistant attorney general for the Justice Department’s Civil Division. “This settlement, along with the prior criminal prosecution of Guidant, demonstrates that there will be significant consequences when companies engage in conduct that threatens health and safety and violates the law.”

Boston Scientific acquired Guidant in 2006, after the period in question.