BDX - Becton Dickinson in $85M settlement over failure to disclose defects with infusion pumps

2023-12-21 17:18:07 ET

Becton, Dickinson ( NYSE: BDX ), or BD, on Thursday said it had agreed to pay $85M to settle claims that it had failed to disclose certain defects with its flagship Alaris infusion pumps.

The company said settlement documents had been filed seeking approval by the U.S. district court in New Jersey.

If approved by the court, the settlement would resolve all claims against Becton ( BDX ) and its executives named in the lawsuit titled "Pensionsforsikring v. Becton, Dickinson and Company, et. al."

As per the allegations against the company, Becton ( BDX ) did not disclose that its Alaris infusion pumps had various product defects, and that BD had over a five-year period made several changes to Alaris products without U.S. Food and Drug Administration (FDA) approval.

"The amount of this settlement is adequately reserved and is not material to BD’s consolidated financial results or BD’s cash flow and capital allocation strategies. BD and its management have denied any wrongdoing, and there is no admission of liability in connection with the resolution of this matter," Becton ( BDX ) said in a regulatory filing .

"BD has elected to settle this matter in order to avoid the burden, expense, uncertainty, and risk associated with a continuation of the litigation," the company added.

The FDA earlier this month said Becton ( BDX ) was recalling its Alaris infusion pumps due to compatibility issues with Cardinal Health's ( CAH ) Monoject syringes, which is one of the most common syringes used with infusion pumps. The regulator had classified the recall as the most serious type according to its rules.

Shares of Becton, Dickinson ( BDX ) on Thursday closed +1.4% at $243.08.

More on Becton, Dickinson

• Following The Q4 Results, Becton, Dickinson and Company Is Still A Hold
• Becton, Dickinson And Company: Strong Q4 But Clouded By 75bps Growth Headwind From China In FY24
• Becton, Dickinson and Company (BDX) Q4 2023 Earnings Call Transcript
• Becton, Dickinson fingertip blood collection device wins FDA nod
• Becton Dickinson names Ronald Silverman as CMO

For further details see: