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      "text": "Eliot Spitzer, New York’s attorney general at the time, alleged that Guidant kept from the public a design flaw in one of its defibrillators. Shortly afterward, Johnson & Johnson, invoked the “material adverse change” clause (MAC). Guidant’s stock dropped to a low of $56.53 or down 25.6% from the $76 offer price. Ultimately, Boston Scientific stepped in and bought Guidant, but the acquisition proved to be even more costly with almost $9 billion of write downs from 2006 to 2012 and a $600 million settlement with Johnson & Johnson in 2015. Boston Scientific’s market capitalization a few years after buying Guidant for $27.2 billion dropped below $13 billion and hit a low of $7.7 billion in 2012.",
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      "text": "Johnson & Johnson announced that it was acquiring Guidant on December 15, 2004, for $76 a share, at a cost of $25.4 billion. Shortly after the acquisition announcement, issues with Guidant’s pacemakers and heart defibrillators arose.",
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      "text": "Boston Scientific’s ill-fated 2006 acquisition of Guidant in 2006 came to a head in March 2010 when the company announced a recall of its entire lineup of implantable defibrillators, a legacy Guidant business area. The news prompted an overnight 13% drop in Boston Scientific’s share price, erased hundreds of millions in annual revenue, and resulted in a drop in total market share for defibrillators from 28% to 22%. A study at the time by McKinsey, a consulting firm, estimated that the company would lose $5 million each day these products were off the market.",
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      "text": "2016, however, reports surfaced that Pfizer was looking to sell Hospira’s troubled pump business for $1.2-$2 billion.",
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      "text": "Boston Scientific recalled (to their credit, voluntarily) the devices upon discovering that two manufacturing process changes were made without FDA approval. The scope of those changes",
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      "text": "The Securities and Exchange Commission opened a formal inquiry into “product disclosures and trading in Guidant stock”. — Eliot Spitzer, New York's attorney general at the time",
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      "text": "Footnotes 56-66 listed at the bottom of the page.",
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