Securities Fraud Case Against Boston Scientific Corporation is Filed by Scott + Scott, LLC
Over $400 Million Sold in Insider Trading, Complaint Alleges
COLCHESTER, Conn., September 21, 2005 — Scott+Scott, LLC (http://www.scott-scott.com) represents client shareholders in a securities class action filed in the United States District Court for the District of Massachusetts against Boston Scientific Corporation (“Boston Scientific”). The case number is 05-cv-11912-JLT. Purchasers of securities in Boston Scientific during the class period from March 31, 2003 through August 23, 2005 inclusive (the “Class Period”) are members of the purported class. Boston Scientific engages in the development and marketing of medical device products useful in the areas of Cardiovascular and Endosurgery.
If you purchased Boston Scientific securities during the Class Period and wish to serve as lead plaintiff, you must move the court no later than 60 days from today. If you wish to discuss this action or have questions concerning this notice or your rights as a class member, you may contact this firm for more information. Scott+Scott, LLC will provide you with case materials, answer all questions regarding your participation and rights and assist you with other services that the firm provides. There is no cost or fee to you. Contact Scott+Scott partner Neil Rothstein at [email protected] (800/332-2259, ext. 22 or cell 619/251-0887) or attorney Amy K. Saba at [email protected] (800/332-2259, ext. 26).
The complaint filed on September 21, 2005 by Scott+Scott, LCC alleges that during the Class Period, Boston Scientific and certain individual defendants violated sections of the Securities and Exchange Act of 1934 causing its stock to trade at artificially inflated levels. The complaint alleges that Boston Scientific provided highly explicit false and misleading assurances of the Company’s ability to satisfy FDA regulations governing its medical device product quality, as well as affirmative representations as to the Company’s knowledge and expertise regarding design, development, marketing approval and sales of its medical devices. The complaint further alleges over $400 million sold in insider trading.
On August 23, 2005, based on the cumulative impact of three separate FDA Warning Letters, investors finally learned of defendants’ broad based concealment of its broken quality program and the risks the Company faced. On the same day, in response to the shocking news from the FDA, defendants’ scheme was revealed. As a result, the price of Boston Scientific stock dropped $1.23, or 4.5% to $25.92, on volume of 15.8 million shares and nearly $19.89 or 43.4% from its Class Period high of $45.81 on April 5, 2004.
Plaintiff seeks to recover damages on behalf of all purchasers of Boston Scientific securities during the Class Period. The plaintiff is represented by Scott+Scott, LLC, which has expertise in prosecuting investor class actions. Scott+Scott, LLC litigates cases throughout the nation on behalf of citizens of every continent. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.