Summary
Boston Scientific Corporation (BSX) announced a settlement on March 16, 2009, to resolve all outstanding litigation with Bruce N. Saffran, M.D., Ph.D. This settlement resolves a significant legal dispute concerning patent infringement related to BSX's TAXUS® Express® and TAXUS® Liberté® coronary stent products. The company expects to record a pre-tax charge of $50 million in the first quarter of 2009 related to this settlement. This development is crucial for investors as it brings closure to a protracted legal battle that resulted in a jury award of $431 million in damages plus $69 million in pre-judgment interest in February 2008. The settlement avoids further legal costs and uncertainty associated with an ongoing appeal and a second complaint filed by Dr. Saffran. While the $50 million charge will impact Q1 2009 earnings, it provides a definitive resolution and removes a significant overhang for the company.
Key Highlights
- 1Boston Scientific has settled all outstanding litigation with Dr. Bruce N. Saffran.
- 2The settlement resolves a patent infringement dispute concerning BSX's TAXUS® stent products.
- 3A pre-tax charge of $50 million is expected to be recorded in Q1 2009 due to the settlement.
- 4The settlement concludes a legal case where a jury previously awarded Dr. Saffran $431 million plus pre-judgment interest.
- 5A joint motion to dismiss the appeal in the Federal Circuit was filed on March 17, 2009.
- 6A second complaint filed by Dr. Saffran seeking damages for continued sales will also be dismissed.