Boston Scientific Corporation Securities Fraud Litigation

Mississippi Public Employees' Retirement System (PERS) securities fraud class action against Boston Scientific Corporation

Boston Scientific Corporation Securities Fraud Litigation

Case Update: On March 10, 2009, the Court granted PERS' motion for class certification. Defendants sought permission from the First Circuit Court of Appeals to appeal the class certification order, but the petition was denied. A class notice was subsequently mailed to all those who purchased or otherwise acquired the equity securities of Boston Scientific Corporation between November 20, 2003 through July 15, 2004 and who were thereby damaged. Additional information and a copy of the class notice is available at a separate website dedicated to the case below. If you wish to exclude yourself from the certified class action, you must send a written request to the claims administrator, postmarked on for before Friday, October 30, 2009.

Boston Scientific Corporation Securities Fraud Litigation Class Notice Website

Background:

Zimmerman Reed represents the Mississippi Public Employees' Retirement System (PERS) in a securities fraud class action against Boston Scientific Corporation. The case is moving forward, following a successful appeal.

The First Circuit Court of Appeals ruled in PERS' favor on April 16, 2008, finding that PERS' complaint satisfies the strict requirements imposed by the Private Securities Litigation Reform Act (PSLRA). The First Circuit reversed the lower court's dismissal of PERS' Complaint as to the issue on appeal, and remanded the case to the district court for further proceedings. On May 27, 2008, the Honorable Douglas P. Woodlock entered a scheduling order in the case, setting deadlines for discovery and motion practice.

The case against Boston Scientific and several top executives was filed in 2006 on behalf of shareholders who suffered investment losses allegedly caused by the defendants' acts of securities fraud, in violation of the Securities Exchange Act of 1934. As narrowed on appeal, the issue of the case focuses on whether Boston Scientific fraudulently failed to inform investors of facts relating to problems with its TAXUS Express Paclitaxel-Eluting Monorail Coronary Stent System ("TAXUS").

PERS alleges that Boston Scientific rushed TAXUS to the market despite known problems with the product stemming from a manufacturing defect, and that Defendants fraudulently hid this information from investors. During this time when important information was withheld from the investing public and the Company's stock was trading at artificially inflated prices, the Company's top executives sold their personal holdings and enriched themselves in excess of $332 million. Ultimately, TAXUS was recalled, leading to a plummeting of the market price of the Company's stock in 2004, and to substantial losses by investors. The lawsuit seeks to recover those losses on behalf of those investors.

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