Boston Scientific Dodges Fraud Suit Over Firings

Law360, New York (September 20, 2011, 3:34 PM EDT) -- A Massachusetts federal judge dismissed a securities fraud class action Monday alleging Boston Scientific Corp. didn’t disclose information about valuable employees fired for unethical sales practices, saying the biotech company seemed "diligent, rather than fraudulent or reckless" in its internal audits.

U.S. District Judge Douglas P. Woodlock found the plaintiffs’ claims failed because they did not sufficiently prove that the defendants’ alleged misstatements and omissions were misleading, a standard they were required to meet under the Securities Litigation Uniform Standards Act.

The plaintiffs had alleged that...
To view the full article, register now.