Business/Financial Desk
| June 13, 2003, Friday
Maker
Admits It Hid Problems In Artery Device
By KURT EICHENWALD (NYT) 1571
words
Late Edition - Final , Section A ,
Page 1 , Column 5
ABSTRACT
- Division of Guidant Corp, one of country's
largest makers of medical devices, pleads
guilty to 10 felonies, admitting it lied to
government and hid thousands of serious
health problems, including 12 deaths, caused
by one of its products; case against
division, Endovascular Technologies, results
in $92.4 million in criminal and civil
penalties, largest ever imposed against
maker of medical devices for failing to
report problems to government; company
developed stent-grafts that could be used to
treat abdominal aortic aneurysms without
major surgery; problem was with device used
to insert stent-graft; equipment could
become lodged, potentially requiring
emergency surgery to remove it; in some
cases, it was broken into pieces before
being removed; Guidant hid results that its
product failed to work properly about one of
every three times it was used; as part of
plea, Endovascular Technologies agrees to
cooperate in investigations against
executives who might have been involved in
wrongdoing; company also faces lawsuits from
individuals; photos; diagram (L) A division
of one of the country's largest makers of
medical devices pleaded guilty yesterday to
10 felonies, admitting that it lied to the
government and hid thousands of serious
health problems, including 12 deaths, caused
by one of its products.
The sweeping case against the division of
the device maker, the Guidant Corporation,
resulted in $92.4 million in criminal and
civil penalties, the largest ever imposed
against a maker of medical devices for
failing to report problems to the
government.
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