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Boston Scientific Corporation Summary: The lead plaintiff has filed an appeal from the March 30, 2007 Order on Motion to Dismiss. The appeal is currently pending in the U.S. Court of Appeals for the First Circuit.
According to an article dated July 31, 2007, on June 21, 2007, the U.S. District Court for the District of Massachusetts dismissed a securities fraud class action against Boston Scientific Corp. and its individual officers and directors, finding that the plaintiffs' allegations of fraud were not pled with the requisite particularity to evidence scienter and loss causation. The district court also found that Boston Scientific disclosed many risks associated with the alleged misstatements and that many statements were mere puffery.
As summarized by the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, on February 15, 2006, the Court ordered that the five class actions be consolidated and appointed the Mississippi Public Employee Retirement System Group as lead plaintiff. A consolidated amended complaint was filed on April 17, 2006. The consolidated amended complaint alleges that the Company made material misstatements and omissions by failing to disclose the supposed merit of the Medinol litigation and DOJ investigation relating to the 1998 NIR ON® Ranger with Sox stent recall, problems with the TAXUS® drug-eluting coronary stent systems that led to product recalls, and the Company’s ability to satisfy FDA regulations concerning medical device quality. The consolidated amended complaint seeks unspecified damages, interest, and attorneys’ fees. The defendants filed a motion to dismiss the consolidated amended complaint on June 8, 2006.
The original complaint alleges that during the Class Period, Boston Scientific, a company that engages in the development and marketing of cardiovascular and endosurgery medical device products, and certain individual defendants violated provisions of the Securities and Exchange Act of 1934, causing its stock to trade at artificially inflated levels. Specifically, the complaint alleges that Boston Scientific provided highly explicit false and misleading assurances of the Company's ability to satisfy FDA regulations governing its medical device product quality, as well as affirmative representations as to the Company's knowledge and expertise regarding design, development, marketing approval and sales of its medical devices. The complaint further alleges over $400 million sold in insider trading.
The complaint further alleges that on or around August 23, 2005, based on the cumulative impact of three separate FDA Warning Letters, investors learned of defendants' broad-based concealment of its broken quality program and the risks the Company faced. As a result, Boston Scientific's stock price dropped $1.23, or 4.5% to $25.92, on volume of 15.8 million shares -- nearly $19.89 or 43.4% from its Class Period high of $45.81 on April 5, 2004.
INDUSTRY CLASSIFICATION:
SIC Code: 3841
Sector: Healthcare
Industry: Medical Equipment & Supplies
| COMPANY/ISSUER NAME: | Boston Scientific Corporation |
| COMPANY/ISSUER TICKER: | BSX |
| COMPANY WEBSITE: | http://www.bostonscientific.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| PSY Trading Incorporated, et al. v. Boston Scientific Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 09/21/2005 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 09/23/2005 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: Boston Scientific Corporation Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Order Granting Mississippi Public Employee Retirement System Group’s Motion For Consolidation Of The Related Actions, Appointment As Lead Plaintiff And Approval Of Lead Plaintiff’s Selection Of Lead And Liaison Counsel | |||
| Type: Order | Date on the document: 02/15/2006 | ||
| Consolidated Amended Complaint for Violation of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 04/17/2006 | ||
| Order | |||
| Type: Order | Date on the document: 03/30/2007 | ||
| Lead Plaintiff's Notice of Appeal | |||
| Type: Notice | Date on the document: 04/27/2007 | ||
| Memorandum | |||
| Type: Memorandum | Date on the document: 06/21/2007 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 06/22/2007 | ||
| OTHER DOCUMENTS | |||
| Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Jack Yopp, et al. v. Boston Scientific Corporation, et al. | |||
| Type: Complaint | Date on the document: 09/27/2005 | ||
| U.S. Court of Appeals For the First Circuit Docket | |||
| Case Name and/or Number: Yopp, et al. v. Boston Scientific Corporation, et al. | |||
| Type: Docket | Date on the document: 06/21/2007 | ||
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