According to The Wall Street Journal, it has been seen that medical device maker Boston Scientific Corp. is being investigated by The Department of Justice and the Securities and Exchange Commission for the recall of their implantable heart defibrillators.
On Friday, according to memorandum, Boston Scientific has sent the prosecutors and the exchange commission have started the formal inquiry.
On March 15, all the sales were stopped by Boston Scientific and it has started to retrieve all unsold products. The situation was described as a document problem and no patients have been injured.
SEC and Justice Investigators are looking into the companies documents that had not been approved by the FDA. They are also looking into the communications with the regulators, physicians and stock analyst about the withdrawal.
Implantable cardioverter defibrillators are the key part of Boston Scientifics’ business, and it works to deliver electronic shocks to the heart. This is implanted in the chest of the patient. According to Wells Fargo’s analyst Larry Biegelsen, a loss of $5 million is being incurred the company on every business day.












