This Rule 10b-5 case involved allegations that the company withheld material information about alleged faults with a medical device that it eventually recalled.
Retained by Shearman & Sterling
On April 27, 2010, Judge Woodlock of the U.S. District Court for the District of Massachusetts granted Boston Scientific’s motion for summary judgment in In re Boston Scientific Corporation Securities Litigation, a Rule 10b-5 case that involved allegations that the company withheld material information about alleged faults with a medical device that it eventually recalled.
Cornerstone Research was retained by Boston Scientific and its counsel to analyze loss causation and to assist in the preparation of an expert report that showed that the plaintiffs’ expert had failed to establish a causal connection between the alleged omissions and his estimate of recoverable losses.
Judge Woodlock agreed with the defendants’ loss causation analysis, ruling that the market was aware of the issues raised in the complaint prior to the alleged corrective disclosure dates. He also rejected the plaintiffs’ argument that trading activity by Boston Scientific executives during the class period was probative of scienter in this case. Trading analyses prepared by Cornerstone Research supported the defendants’ scienter arguments.