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Boston Scientific Reaches $296 Million Settlement In Guidant Case



DOW JONES NEWSWIRES

Boston Scientific Corp. (BSX) agreed to pay $296 million to resolve a Justice Department investigation into to product advisories at its Guidant defibrillator unit.

Shares of the medical-device maker fell 3.1% at $7.80 in premarket trading. Through Thursday, the stock was up 4% for 2009.

Because of the settlement, Boston Scientific now says it had a third-quarter loss of $94 million, or 6 cents a share, not the profit of $200 million, or 11 cents a share, it reported last month.

As part of the agreement, Guidant will plead to two misdemeanor charges related to improper reporting to the Food and Drug Administration.

Boston Scientific bought the bulk of Guidant in 2006 while Abbott Laboratories (ABT) bought the company's vascular business.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@ dowjones.com


  (END) Dow Jones Newswires
  11-06-090929ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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