Boston Scientific Corp (BSX)

[mlkrborn]

BSX 5.85 after getting rid of Guidant's headache/.
DOJ: Boston Sci's Guidant Agrees To Pay $9.3M To Settle Claims
Last update: 9/26/2011 3:11:57 PM
DOW JONES NEWSWIRES
The U.S. Department of Justice said Boston Scientific Corp.'s (BSX) Guidant subsidiary agreed to pay $9.3 million to settle the government's allegations that it inflated the cost of replacement devices to federal health-care programs.
Representatives for Boston Scientific were unable to comment immediately on the news.
Boston Scientific bought implantable defibrillator maker Guidant for $28.4 billion in 2006 but has struggled to make the costly acquisition pay off.
The Justice Department had claimed that Guidant inflated the cost of replacement pacemakers and defibrillators to federal health care programs by failing to grant warranty credits and rebates to hospitals for devices that were taken out while covered by some sort of warranty or credit program.
Monday's civil settlement resolves allegations contained in a whistleblower lawsuit. As part of the resolution, whistleblower Robert A. Fry will receive payments of more than $2.3 million from the settlement amount.
Shares in Boston Scientific were up 2.1% at $5.88 in recent trading.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]
(END) Dow Jones Newswires