Case Page

 

Case Status:    DISMISSED    
On or around 08/06/2012 (Court's order of dismissal)

Filing Date: April 09, 2010

According to a press release dated April 09, 2010, the complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding BSX’s business and prospects. Specifically, defendants’ statements to investors during the Class Period misrepresented existing facts known to defendants or recklessly disregarded by them, or omitted to disclose facts defendants knew or disregarded that were necessary to make the statements made not misleading to investors, including the following: (a) sales and demand for the Company’s CRM products had been substantially and materially inflated by the payment of illegal and improper inducements to health care professionals; (b) a material portion of the Company’s CRM reported or anticipated revenues resulted from the sale of products which had been manufactured without required FDA approval, such that they were subject to recall and refund or replacement; (c) demand for the Company’s CRM products had weakened due to the curtailment and cessation of payments of illegal and improper inducements to health care professionals, which defendants attributed to other factors; and (d) defendants failed to timely or fully disclose the problems and defects in the headers of certain of the Company’s ICD products such that defendants’ statements about CRM sales in general and sales of ICDs in particular were materially misleading.

On March 15, 2010, before the market opened, BSX announced that it was suspending sales of and was recalling all of its ICD and CRT-D devices because it had changed the manufacturing process for the devices without obtaining FDA approval. On this news, BSX shares dropped 12.6%, to close at $6.80 per share, on volume of 243 million shares.

On July 13, 2010, Judge Patti B. Saris signed the Order appointing Steelworkers Pension Trust and KBC Asset Management NV as co-lead plaintiffs, and approved lead plaintiffs’ selection of Berger & Montague, P.C., and Motley Rice LLC as co-lead counsel. On September 14, 2010, the lead plaintiffs filed an Amended Complaint. The defendants responded by filing a motion to dismiss the Amended Complaint on December 27, 2010.

According to a news article dated September 20, 2011, a Massachusetts federal judge dismissed a securities fraud class action Monday alleging Boston Scientific Corp. didn’t disclose information about valuable employees fired for unethical sales practices, saying the biotech company seemed "diligent, rather than fraudulent or reckless" in its internal audits. U.S. District Judge Douglas P. Woodlock found the plaintiffs’ claims failed because they did not sufficiently prove that the defendants’ alleged misstatements and omissions were misleading, a standard they were required to meet under the Securities Litigation Uniform Standards Act.

On October 17, 2011, the plaintiff filed a Notice of Appeal. The appeal is currently pending in the United States Court of Appeals for the First Circuit.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BSX
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 10-CV-10593
JUDGE: Hon. Patti B. Saris
DATE FILED: 04/09/2010
CLASS PERIOD START: 04/20/2009
CLASS PERIOD END: 03/12/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  3. Robbins Geller Rudman & Dowd LLP (San Francisco)
    100 Pine Street, Suite 2600, Robbins Geller Rudman & Dowd LLP (San Francisco), CA 94111
    415.288.4545 415.288.4534 ·
  4. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
  5. VanOverbeke Michaud & Timmony, P.C.
    79 Alfred Street, VanOverbeke Michaud & Timmony, P.C., MI 48201
    313.578.1200 313.578.1200 ·
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 10-CV-10593
JUDGE: Hon. Patti B. Saris
DATE FILED: 09/14/2010
CLASS PERIOD START: 10/20/2009
CLASS PERIOD END: 02/10/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Motley Rice LLC (Hartford)
    One Corporate Center; 20 Church St.; 17th Floor, Motley Rice LLC (Hartford), CT
    860.882.1681 860.882.1681 · inquiry@motleyrice.com
  3. Motley Rice LLC (Mount Pleasant)
    28 Bridgeside Boulevard, Motley Rice LLC (Mount Pleasant), SC 29464
    843.216.9000 843.216.9450 · inquiry@motleyrice.com
No Document Title Filing Date