Boston Scientific

The U.S. Justice Department filed a lawsuit against the company claiming it illegally continued to make and sell systems for implanting stents in 1998 even after learning that a significant percentage of them were defective. In the summer of 1998 Boston Scientific began shipping large amounts of stents from Medinol that Boston Scientific attached to its balloon catheters. Boston Scientific received evidence within days of its first shipments that some of the balloons had pinholes; a defect that caused them to burst before they had finished fully expanding. The company continued shipping the devices even after they discovered the device was failing to meet the product's advertised specifications. The company has agreed to a $74 million settlement with the Justice Department. (Jun-25-05) [NEW YORK TIMES]

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