Zimmerman Reed Files Lawsuit Against Guidant, on Behalf of Medicare Beneficiaries -- GDT

Suit Seeks to Recover Medicare Costs Related to Guidant's Recalled Defibrillators

MINNEAPOLIS, Aug. 3, 2005 (PRIMEZONE) -- The recent FDA recall of Guidant's defective implantable cardioverter defibrillator devices (ICD) is not only affecting patients. The federally funded Medicare Program is also taking an enormous hit. Minneapolis law firm Zimmerman Reed PLLP and San Diego law firm Jennings & Drakulich, LLP represent Medicare patients in a lawsuit filed this month to recover damages under federal law on behalf of the Medicare Program. As reported by Sanford C. Bernstein & Company investment firm, the costs to Medicare and private insurers for defibrillators is expected to reach $10 billion, with Medicare covering about half of that expense.

Guidant has indicated that it expects Medicare to pay for all repair or replacement services for its defective ICD devices. In response to the $5 billion price tag Medicare now faces, Medicare beneficiaries are asserting claims on behalf of the federal Medicare Program, seeking reimbursement of costs paid by Medicare related to the recalled Guidant ICDs. According to Zimmerman Reed attorney, Gordon Rudd, "Medicare is paying for these devices on the front end, where they are being pushed in inappropriate contexts -- and then when the products fail and there are recalls, Medicare is paying on the back end. Guidant can't 'pass the buck' for its faulty products to the American taxpayer." The lawsuit argues that while costs of the faulty devices qualifies under Medicare, that Guidant should be paying these costs since Medicare is secondary to any liability insurance provided by Guidant.

Guidant has recalled a number of models of ICDs, leading to an FDA Class I and Class II recall of the devices. A Class I recall, the most serious type of recall, involves situations in which there is a reasonable probability that use of the affected product will cause serious injury or death. A Class II recall involves situations in which the malfunctioning product may cause temporary or medically reversible adverse health consequences, although, the probability of serious adverse health consequences is remote.

To view a copy of the Complaint or to learn more about the Guidant devices and recalls, please visit www.zimmreed.com. Questions can be directed to attorneys Nick Drakulich at Jennings & Drakulich (858.755.5887) or Gordon Rudd at Zimmerman Reed (800.755.0098).

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.

CONTACT:  Zimmerman Reed PLLP a
          Gordon Rudd
          (800) 755-0098

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