POTENTIAL CRIMINAL PROBE DRIVES GUIDANT STOCK DOWN
Shares of Guidant dropped to their lowest levels in two and a half months following press reports that the company was under criminal investigation for how it handled flaws with its implantable heart devices.
Guidant has been under fire since a 21-year old college student died of cardiac arrest after his implantable cardioverter defibrillator (ICD) short-circuited. While the company said it was unaware of any criminal investigation, press outlets such as The New York Times recently reported that the FDA was launching a criminal investigation of the firm.
Guidant, which recalled certain models of its ICD over the summer, has faced criticism for allegedly knowing about problems with the device for years before notifying regulators. Because of news about the potential investigation, Guidant shares dropped by $2.12, or three percent, to $68.12 in recent trading.