A federal judge has ruled that some product-liability claims against Boston Scientific over implantable heart defibrillators can proceed, rejecting the medical device maker's motions to dismiss them.
Guidant, which Boston Scientific bought last year, continued to sell heart rhythm-management devices after learning of possible defects, Judge Donovan Frank of the US District Court in Minnesota said in a ruling yesterday.
"This case concerns the issues of whether, how and to whom information was shared ... about a device with an alleged defect," Judge Frank wrote in his ruling.
Boston Scientific, which bought Guidant to acquire its portfolio of heart devices, recalled more than 100,000 of the products between 2005 and 2006.
Guidant recalled more than 100,000 of its heart devices between 2005 and 2006. "We are fully prepared to take the bellwether cases to trial and remain confident that when juries look into the individual facts, they will side with us," a Boston Scientific spokesman said.
"Guidant defibrillators continue to be among the most reliable in the industry." Boston Scientific, the number three maker of the implantable heart devices after Medtronic Inc. and St. Jude Medical, has estimated damages and costs to cover legal expenses will be $732 million.
"Clearly, Boston Scientific knew they'd be facing litigation ... and in any litigation you're going to have wins and losses," said David Katz, chief investment officer at Matrix Asset Advisors, which owned 2.3 million Boston Scientific shares as of March 31st, 2007. "You have to take them in stride."