Boston Scientific Corporation’s subsidiary Guidant Inc. will pay the fedreal government $9.25 million to resolve allegations that it overcharged government programs by failing to fulfill its obligations under warranties covering defibrillators and pacemakers.
Guidant sold defibrillators and pacemakers to doctors with generous warranty programs covering failures or defects but the company knowingly failed to grant credits in a large number of cases where the product failed and was still under warranty according to the allegations. As a result, Medicare paid more for pacemakers and defibillators than it should have. The whistleblower Robert A. Fry will receive more than $2.3 million out of the settlement .
