Guidant Posts Loss on Settlement of Charges
From Bloomberg News
Guidant Corp. had a $97.1-million quarterly loss after settling charges that it concealed defects in thousands of products used to treat aneurysms. Sales rose 20%.
In June, Guidant agreed to plead guilty to felony charges for failing to report problems inserting a device to treat abdominal aneurysms.
The Indianapolis-based company said it would pay a record fine of $94.4 million and decided to shut down that business, based in California.
The net loss was equal to 32 cents a share, contrasted with net income of $204.8 million, or 67 cents, a year earlier. Sales climbed to $944.9 million from $787.8 million.
Shares of Guidant rose $3.45 to $49.96 on the NYSE.
