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Judge Rejects Guidant $296 Million Guilty Plea

by Heather Mayer, DOTmed News Reporter | April 29, 2010

Now, the court advises that any revised plea deal include that a "significant portion" of any fines be paid to Medicare.

"It's possible that at least 15,000 of the devices at issue in this case went to Medicare recipients and that, as a result, Medicare likely incurred significant expenses related to the Prizm and Renewal device," he wrote.

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While the company can withdraw the guilty plea and go to trial, Frank points out that the court "may then dispose of this case less favorably than the plea agreement contemplated."

Zimmerman thinks if the case goes to trial, Guidant will be convicted.

"I can't see them winning," he said. "I believe that they did things that were wrong. If you believe in truth and justice, they'd be convicted."

According to a PR Newswire statement, Boston Scientific plans to revise the plea agreement and present it to the court.

"The company said it plans to work with the [Department of Justice] in an effort to develop a modified plea agreement that is acceptable to the court, the [Department of Justice] and the company," the statement said.

Judge Frank is barred from taking part in any discussions between the Department of Justice and Guidant about a revised deal, said Zimmerman. But the court said it "would likely consider a modified agreement to be in the interest of justice if it addressed the concerns raised in this order, specifically with respect to probation, community service, coordination with the FDA and any other appropriate regulatory agencies, and a discussion of where the fine and forfeiture funds will go."

Other than those items, according to the press release, "the court did not suggest revisions to the remaining terms of the plea agreement."

Boston Scientific did not return calls or e-mails for comment.

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