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US Sues Boston Scientific Over Guidant ICDs
January 28, 2011 (Washington, DC) — The US Department of Justice (DoJ)announced yesterday that it is suing Boston Scientific, claiming that its Guidant subsidiary--which it acquired in 2006 --sold implantable cardiac defibrillators (ICDs) that it knew were defective to Medicare between 2002 and 2005 [1].
The DoJ is suing the company by joining a lawsuit filed by a private citizen, James Allen, in Minnesota, under the "whistleblower provisions" of the False Claims Act; Allen says he received one of the defective devices.
The move follows the breakdown of an agreement between Boston Scientific and the DoJlast year, when the US District Courtin Minnesota rejected a proposed plea deal that would have settled the charges against Guidant. That would have required Boston Scientific to pay a penalty of more than $296 million, which would have been the largest criminal penalty ever imposed on a device manufacturer for violating the Food, Drug, and Cosmetic Act.
The allegation is that Guidant knew as early as April 2002 that its Prizm 2 ICD contained a "potentially life-threatening defect" and that it knew as early as November 2003 that other ICDs, the Renewal 1 and 2, contained similar defects. Although it fixed the faults, Guidant continued to sell stock of the old, defective versions of the devices, the suit claims.
"Moreover, as information about the cause and nature of the defect grew within the top ranks of the company, the US contends that Guidant took steps to hide the problem from patients, doctors, and the FDA. Instead of disclosing the problem, Guidant issued a misleading communication to doctors that misinformed them about the nature of the defect," says the DoJ in its statement.
It adds that it was only in May 2005--when Guidant was contacted by a reporter and a front-page story on the subject appeared in theNew York Times--that the company subsequently recalled the devices.
"Patients with serious heart conditions who depend on these devices should not have to second-guess whether they are safe and effective," says Tony West, assistant attorney general for the DoJ's civil division, in the statement. "When a medical-device manufacturer conceals problems with its products, as is alleged here, not only is taxpayer money wasted, but lives are put at risk."
In an e-mail to heartwire , Boston Scientific spokesperson Paul Donovan said: "Guidant plans to respond to the government's allegations and claims for damages in the appropriate fashion."