Boston Scientific Defibrillator Recall

Boston Scientific has announced a massive medical device recall of its popular implantable defibrillators, retrieving the inventory of all its implantable cardioverter defibrillators (ICDs) and cardiac resynchronization therapy defibrillators (CRT-Ds).

Will defibrillator lawsuits come out of this? While defibrillators are a frequent source of lawsuits, I think the answer is no because I don’t think anyone has suffered a meaningful injury as the result of this recall. But it is hard to say because Boston Scientific is not disclosing what manufacturing process change they made or how long it might be before they return to the market. Not an encouraging sign for an industry that, as this Bloomberg article points out, has been difficult to trust.

I can’t help but wonder if the lack of transparency is going to alienate both doctors – who in a sense are the real consumer – and shareholders who have seen a fall in the stock price of BSX as a result of this recall.