BSX.US

id: 913

Boston Scientific $38.5M Investor Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.

D. Massachusetts

Court

1:20-cv-12225

Case number

16 Sept 2020

Class period Start

16 Nov 2020

Class period End

28 May 2024

Claim deadline

Boston Scientific has agreed to a $38.5 million settlement with investors to resolve claims that the company made misleading statements about its heart valve product, the LOTUS Edge. The lawsuit alleges that Boston Scientific promoted the product while concealing major delivery system issues, which eventually led to its global recall. The stock dropped significantly after the recall was announced, causing substantial financial losses for investors during the class period.

Outline

Investors filed the lawsuit after Boston Scientific promoted the LOTUS Edge as a promising product despite internal knowledge of its flaws. Following the recall announcement, Boston Scientific’s stock dropped by more than 10%, resulting in significant losses for shareholders.

Timeline
September 2020: Boston Scientific promotes the LOTUS Edge, projecting strong sales growth.
November 2020: Boston Scientific announces a global recall of the LOTUS Edge due to delivery system failures.
November 2020: Stock drops over 10% following the recall, causing significant financial losses for investors.
December 4, 2020: Investors file a class-action lawsuit, accusing Boston Scientific of misleading statements.
Background

Boston Scientific introduced the LOTUS Edge heart valve to treat severe aortic stenosis in 2019. It was marketed as an innovative solution with strong market potential. Despite early sales success, the company encountered significant problems with the device’s delivery system, which led to complications in both production and clinical use. These issues increased training costs and affected the device’s reliability.

Although these challenges were well known internally, Boston Scientific continued to promote the LOTUS Edge as a key growth driver. The company assured investors that the device’s market prospects remained strong, which kept stock prices buoyed. However, on November 16, 2020, Boston Scientific announced a global recall of the LOTUS Edge due to persistent delivery system failures. This announcement led to an immediate 10% drop in stock price, wiping out a large portion of the company's market value and triggering financial losses for investors.

The lawsuit, led by Union Asset Management Holding AG, alleged that Boston Scientific and its executives, including CEO Michael Mahoney and CFO Daniel Brennan, failed to disclose the severity of the product’s issues. Plaintiffs argued that by concealing the true extent of the delivery system problems, the company misled investors about the future profitability of the product, leading them to suffer substantial losses when the truth was revealed.

What Can Investors Expect Now?

Investors who suffered financial losses due to Boston Scientific’s misleading statements about the LOTUS Edge heart valve product may be eligible for compensation from the $38.5 million settlement.

If you were impacted by this situation, you can file a claim to receive your share of the settlement. You can check your eligibility and other important details in the FAQ section below

Case Status

Accepting Late Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.43

Filing date

04 December 2020

Plaintiffs

Union Asset Management Holding AG

Attorneys

Bernstein Litowitz Berger & Grossmann LLP

Defendants

Michael F. Mahoney, Daniel J. Brennan, Shawn McCarthy, Ian Meredith, Joseph M. Fitzgerald, Kevin Ballinger, Susan Vissers Lisa

Judge

Hon. Douglas P. Woodlock

Administrator

JND Legal Administration

Settlement agreement date

2023-12-15

Court hearing date

23 April 2024

Exclusion deadline

02 April 2024

Objection deadline

02 April 2024

Hearing deadline

02 April 2024

Trades matching type

FIFO

+$38,500,000

Cash Settlement Amount

Frequently Asked Questions

Who is eligible for this settlement?

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How much will my payment be?

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