Boston Scientific Corp., (BSX) which manufactures cardiology devices, announced Wednesday that it has agreed to settle civil allegations brought by the U.S. Department of Justice, related to a 2005 investigation conducted by the U.S. Attorney’s office in Boston.
The company has agreed to pay $22 million, without admitting wrong-doing to settle the suit which alleged Guidant Corp. conducted some “post-market surveys” before its acquisition by Boston Scientific in 2006, which paid physicians to encourage them to use the company’s heart devices.
Boston Scientific has also agreed to a corporate integrity agreement with the U.S. Department of Health and Human Services, which will require it make certain enhancements to some compliance procedures associated with financial agreements with health care providers, according to the release.
The agreement is limited to the cardiac rhythm management business which the company inherited as part of its acquisition with Guidant, the company said.
Shares of Boston Scientific rose two cents or 0.23% in Wednesday’s session to close at $8.82 a share.
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