Boston Scientific $38.5M Investor Settlement
Boston Scientific has agreed to a $38.5 million settlement with investors to resolve claims that the company made misleading statements about its heart valve product, the LOTUS Edge. The lawsuit alleges that Boston Scientific promoted the product while concealing major delivery system issues, which eventually led to its global recall. The stock dropped significantly after the recall was announced, causing substantial financial losses for investors during the class period.
Investors filed the lawsuit after Boston Scientific promoted the LOTUS Edge as a promising product despite internal knowledge of its flaws. Following the recall announcement, Boston Scientific’s stock dropped by more than 10%, resulting in significant losses for shareholders.
September 2020: Boston Scientific promotes the LOTUS Edge, projecting strong sales growth.
November 2020: Boston Scientific announces a global recall of the LOTUS Edge due to delivery system failures.
November 2020: Stock drops over 10% following the recall, causing significant financial losses for investors.
December 4, 2020: Investors file a class-action lawsuit, accusing Boston Scientific of misleading statements.
Boston Scientific introduced the LOTUS Edge heart valve to treat severe aortic stenosis in 2019. It was marketed as an innovative solution with strong market potential. Despite early sales success, the company encountered significant problems with the device’s delivery system, which led to complications in both production and clinical use. These issues increased training costs and affected the device’s reliability.
Although these challenges were well known internally, Boston Scientific continued to promote the LOTUS Edge as a key growth driver. The company assured investors that the device’s market prospects remained strong, which kept stock prices buoyed. However, on November 16, 2020, Boston Scientific announced a global recall of the LOTUS Edge due to persistent delivery system failures. This announcement led to an immediate 10% drop in stock price, wiping out a large portion of the company's market value and triggering financial losses for investors.
The lawsuit, led by Union Asset Management Holding AG, alleged that Boston Scientific and its executives, including CEO Michael Mahoney and CFO Daniel Brennan, failed to disclose the severity of the product’s issues. Plaintiffs argued that by concealing the true extent of the delivery system problems, the company misled investors about the future profitability of the product, leading them to suffer substantial losses when the truth was revealed.
Investors who suffered financial losses due to Boston Scientific’s misleading statements about the LOTUS Edge heart valve product may be eligible for compensation from the $38.5 million settlement.
If you were impacted by this situation, you can file a claim to receive your share of the settlement. You can check your eligibility and other important details in the FAQ section below
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired Boston Scientific common stock during the period from September 16, 2020 through November 16, 2020, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.43 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.72 per share.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.