UPDATE 1-Boston Scientific to pay $22 mln DOJ settlement

Wed Dec 23, 2009 5:49pm EST

* Boston Scientific to pay $22 mln to settle investigation

* Boston Scientific to sign integrity agreement

* No admission of wrongdoing

NEW YORK, Dec 23 (Reuters) - Medical device manufacturer Boston Scientific Corp (BSX.N) settled on Wednesday a U.S. Department of Justice investigation by paying a fee and signing an integrity agreement.

The company, which makes heart pacemakers, implantable heart defibrillators, heart stents and other medical devices, said it will pay $22 million in a civil settlement and sign a "Corporate Integrity Agreement" related to its pacemaker business, where it will disclose on a website any payments to physicians, according to a press release by the DOJ.

The DOJ was investigating Boston Scientific's subsidiary, Guidant Corp, for trying to boost sales by paying physicians between $1,000 and $1,500 to implant Guidant-brand pacemakers and defibrillators in patients.

Guidant paid the physicians after the devices were implanted through four separate studies.

Boston Scientific acquired Guidant Corp in 2006. The investigation began in 2005 and included no admission of wrongdoing, Boston Scientific said in a press release.

The $22 million was previously fully accrued, the company said.

A spokesman for the company declined further comment.

Boston Scientific agreed in November to pay $296 million to settle a separate DOJ investigation into product recalls issued by Guidant. In a separate regulatory filing, it said it received a subpoena from the U.S. Department of Health and Human Services, Office of Inspector General, to produce information about donations made by the pacemaker division of the company to charities with ties to physicians and their families. [nN06175960] (Reporting by Clare Baldwin; editing by Andre Grenon)

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