Guidant Corp. Shares Continue Slide
The Business Journal
June 13, 2003
Shares of Guidant Corp. dipped in very heavy trading Friday, after a Chicago law firm said it plans to file a class action lawsuit against the company.
The announcement followed a $92.4 million settlement between the Indianapolis-based company and the Department of Justice regarding a defective Guidant device used to treat aortic abdominal aneurysms.
Kenneth Moll and Associates said it was investigating two deaths that occurred as a result of the device.
Attorney Kenneth Moll told Reuters that about 18,000 patients have received the device and that there is a failure are of about one-third. Moll told the wire service that he estimated the potential legal exposure at $30 billion.
Shares of Guidant, whose cardiac rhythm activities are located in Arden Hills, had lost about 10 percent of their value on Thursday. They closed down an additional 61 cents, or 1.5 percent, at $39.95 on Friday.
The company said in a press release Friday afternoon that it will host a conference call on Monday to discuss the latest developments.