Lieff Cabraser Heimann & Bernstein, LLP - Securities and Investment Fraud
   
 
Guidant Pacemaker | Defibrillator Recall News Article
 
June 2, 2005
The New York Times, "Heart Device Sold Despite Flaw, Data Shows"
          When the Guidant Corporation told doctors last week that a popular implantable heart defibrillator had failed in a small number of cases because of an electrical flaw, it also said that it had fixed the flaw in devices produced after mid-2002.
          But now data provided by Guidant to a Minnesota hospital suggests that the company continued to sell the potentially flawed devices for months after it changed the way it made the device and had begun selling the new ones.
          The Guidant data, which the company provided to doctors at Abbott Northwestern Hospital in Minneapolis, indicates that from May to September 2002, nine patients there received implants of defibrillators that were made before April 2002.
          It was during that month that the company first changed its manufacturing process to eliminate the risk of short-circuiting. A senior company official has said that Guidant to date has not received reports of such failures in units made after April 2002.
          A defibrillator, which is implanted under the skin in the chest, acts to shock a chaotically beating heart back into normal rhythm. The device at issue is known as the Ventak Prizm 2 DR Model 1861, or alternatively as the Prizm 2 DR.
          Last week, Guidant, which is based in Indianapolis, told doctors and patients for the first time that the defibrillator failed because of the short-circuiting problem seen in 26 known cases, including one recent death. About 37,000 such units were made before Guidant made the April 2002 fix. An estimated 24,000 people still use one of those units.
          The apparent fact that Guidant sold older devices with the potential flaw when improved ones were available could pose a new round of problems for the company. The Food and Drug Administration is reviewing how Guidant officials handled problems related to the device.
          In addition, two plaintiffs' law firms filed an action yesterday against Guidant in Federal District Court in Indianapolis seeking damages in connection with the company's handling of the device. Guidant has previously said that it did nothing wrong.

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