Boston Sci. Pays $22M To Settle Subsidiary Suit
Natick-based Boston Scientific Corp. has agreed to pay $22 million in a settlement with the U.S. Department of Justice related to an investigation into Guidant Corp., which BSX acquired in 2006.
The investigation predates BSX's ownership of Guidant and involved allegations that Guidant paid kickbacks to doctors to convince them to use the company's products.
The firm disclosed the investigation to BSX before the $27 billion acquisition.
In the settlement, BSX admits no wrongdoing, but agrees to enter into a "Corporate Integrity Agreement" with the U.S. Department of Health and Human Services.
The agreement requires the company to improve compliance procedures related to financial arrangements with health care providers and is limited to the company's cardiac rhythm management business, which became part of the company through its acquisition of Guidant.
Last month, BSX agreed to pay $296 million to settle a separate justice department case against Guidant.
As part of that agreement, Guidant will plead guilty to two misdemeanor charges related to failing to include information in reports to the U.S. Food and Drug Administration. That violation also occurred in 2005, before BSX bought the company.
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