CASES
Boston Scientific Corp. (2010)
Class Period: Oct 20, 2009 to Feb 10, 2010
Lead Plaintiff Deadline: Jun 8, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Boston Scientific Corp. (2010) (BSX) ("BSX" or the "Company") on behalf of all securities purchasers from April 20, 2009 through March 12, 2010, inclusive ("Class Period"), in the United States District Court of Massachusetts.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding Boston Scientific Corp.'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.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.