8-KOther EventsExhibits & Filings

BOSTON SCIENTIFIC CORP 8-K Report, Corporate Update (Jun 29, 2005)

Filed June 29, 2005For Securities:BSX

Summary

This 8-K filing by Boston Scientific Corporation (BSX) on June 29, 2005, announces the resolution of a significant legal matter. The company has entered into a civil settlement with the U.S. Department of Justice for $74 million to conclude an investigation dating back to 1998 concerning the recall of its NIR ON® Ranger™ with Sox™ coronary stent delivery system and its relationship with vendor Medinol. The settlement, finalized on June 24, 2005, brings closure to a federal grand jury investigation where Boston Scientific and two senior officials were targets. Importantly, the Department of Justice filed a dismissal with prejudice, meaning no charges were brought against the company or any employee, and there is no admission of wrongdoing by Boston Scientific. This resolution removes a significant overhang for investors, allowing the company to focus on its core operations.

Key Highlights

  • 1Boston Scientific has reached a $74 million civil settlement with the U.S. Department of Justice to resolve an investigation initiated in 1998.
  • 2The investigation primarily concerned the recall of the NIR ON® Ranger™ with Sox™ coronary stent delivery system and relationships with vendor Medinol.
  • 3The settlement brings closure to a federal grand jury investigation where the company and two senior officials were targets.
  • 4The Department of Justice filed a dismissal with prejudice, indicating no charges were brought against Boston Scientific or any employees.
  • 5The settlement includes no admission of wrongdoing by Boston Scientific or its employees.
  • 6This filing represents a significant legal resolution, removing a long-standing uncertainty for investors.

Frequently Asked Questions

The main event is Boston Scientific's settlement of a civil investigation with the U.S. Department of Justice for $74 million. This resolves a probe that began in 1998 concerning a recalled coronary stent delivery system and vendor relationships.

No, the U.S. Department of Justice filed a dismissal with prejudice, which means no charges were brought against Boston Scientific or any of its employees as part of this settlement.

No, the settlement explicitly states that there is no admission of any wrongdoing by Boston Scientific or any of its employees. The company maintains it acted legally and appropriately.

The investigation stemmed from the recall of Boston Scientific's NIR ON® Ranger™ with Sox™ coronary stent delivery system in October 1998 due to reports of balloon leaks, and aspects of its relationship with the vendor, Medinol.