Summary
Boston Scientific Corporation (BSX) announced on January 25, 2011, the resolution of a criminal investigation dating back to before its 2006 acquisition of Guidant LLC. The United States District Court for the District of Minnesota accepted Guidant's plea agreement with the U.S. Department of Justice regarding product advisories issued by Guidant in 2005. This plea agreement resolves the DOJ's criminal investigation into Guidant's past actions. As part of the agreement, Boston Scientific will pay a total of $296 million on behalf of Guidant to resolve misdemeanor charges related to failures in reporting to the FDA. Guidant LLC has been placed on probation for three years, with annual reviews for potential early discharge. Additionally, Boston Scientific has voluntarily committed to contribute $15 million over three years to its Close the Gap program and STEM education initiatives. The $296 million payment is due within 10 business days of the court's acceptance of the plea.
Key Highlights
- 1Guidant LLC, a subsidiary of Boston Scientific, has resolved a U.S. Department of Justice criminal investigation through a plea agreement.
- 2The investigation stemmed from product advisories issued by Guidant in 2005, prior to Boston Scientific's acquisition.
- 3Boston Scientific will pay $296 million on behalf of Guidant to settle misdemeanor charges related to reporting failures to the FDA.
- 4Guidant LLC has been placed on a three-year probation by the court, with annual reviews for early discharge.
- 5Boston Scientific has voluntarily committed to a $15 million contribution to its Close the Gap program and STEM education over three years.
- 6The $296 million payment is required within 10 business days of the court's acceptance of the plea agreement.