Summary
Boston Scientific Corporation (BSX) filed an 8-K on November 19, 2007, to announce an amended settlement agreement concerning product claims originating from Guidant Corporation, which BSX acquired in the previous year. The amendment addresses additional unanticipated claims beyond the initial July 2007 settlement. The amended agreement will result in BSX paying up to $240 million to settle 8,550 patient claims. This includes all claims consolidated in the U.S. District Court for the District of Minnesota (MDL) and other filed and unfiled claims across the United States. Importantly, this amendment has led to a stay in proceedings in Minnesota state court, mirroring the status of the bellwether cases in the MDL.
Key Highlights
- 1Boston Scientific reached an amended settlement agreement to resolve product claims from its acquisition of Guidant Corporation.
- 2The total settlement amount is capped at $240 million.
- 3The agreement covers 8,550 patient claims, including those in a Multi-District Litigation (MDL) in Minnesota.
- 4This amendment resolves both consolidated and other filed and unfiled claims nationwide.
- 5Proceedings in Minnesota state court have been stayed as a result of the amended agreement.
- 6The company acquired Guidant Corporation in the previous year, making this a legacy issue.