NEW YORK, Nov. 3, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) filed a class action lawsuit on November 2, 2005, on behalf of purchasers of securities of Boston Scientific Corporation ("Boston Scientific" or the "Company") (NYSE:BSX) during the period from March 31, 2003 through August 23, 2005, inclusive (the "Class Period"). Defendants include James R. Robin, chief executive officer and president and Paul A. Laviolette, chief operating officer. The case, Civil Action Number 05-12194 JLT, was filed in the United States District Court, District of Massachusetts.
Boston Scientific, a Delaware-based corporation, is a worldwide developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. The Complaint charges that Defendants violated the Securities Exchange Act of 1934 (Sections 10(b) and 20(a) and Rule 10b-5 promulgated thereunder) by making false and misleading statements to the investing public as to the Company's ability to satisfy FDA regulations governing its medical device product quality, as well as affirmative representations as to the Company's knowlege and expertise regarding design, development, marketing approval and sales of its medical devices.
The true facts, which were known to each of the defendants but concealed from the investing public, were that (i) the Company's internal controls, corporate compliance processes and systems as they were directly related to the medical device product life cycle were deficient and defective; (ii) the Company suffered from longstanding, basic, chronic and global deficiencies in its quality practices; (iii) the Company had failed to comply with numerous FDA medical device regulations and federal statutes governing its quality practices; and (iv) public safety was at risk, since the Company was unable to reliably assure safety and efficacy for any of its products.
On August 23, 2005, based on the cumulative impact of three separate FDA Warning Letters, investors finally learned of the true nature of defendants' concealment of its broken quality program and the risks the Company faced that were completely unrelated to the Company's ongoing and unpredictable patent litigation agenda. The truth was that the performance of the Company was immediately related to the revelations of quality and regulatory obstacles impacting marketability. As a result of the news form the FDA, the Company's stock price fell $1.23 per share. The stock has plummeted $19.89, or over 43 percent, from its Class Period high of $45.81 on April 5, 2004.
If you purchased Boston Scientific Corporation securities during the Class Period, you have until November 21, 2005 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) via email or call the Pomerantz Firm at (888) 476-6529 (888 4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and phone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition Mr. Pomerantz established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.