Becton Dickinson Agrees to $85M Settlement for Concealing Defects in Infusion Pumps

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The pumps are used in hospitals and other health care institutions to deliver accurate doses of medications, fluids, and other solutions into the veins of patients. The plaintiffs alleged that the company was aware of a defect that would cause the pumps to dispense more or less medication than prescribed, which could lead to serious harm or even death of the patient. In addition to this, Becton ($NYSE:BDX) Dickinson has agreed to implement a corrective action plan and has also committed to providing better information to the public about the risks associated with their products.

The settlement is a major victory for the plaintiffs and is intended to ensure that Becton Dickinson takes appropriate steps to protect public safety in the future. It also sends a strong message to other medical technology companies that they must be transparent and honest when it comes to informing the public about any potential risks associated with their products.

Stock Price

On Thursday, Becton Dickinson & Co. (BD) agreed to pay $85 million to settle a False Claims Act claim over the sale of defective infusion pumps. The claim alleged that BD had concealed defects in their devices which served as medical devices for administering drugs and fluids intravenously to patients. Following the announcement, BD’s stock opened at $240.7 and closed at $243.1, up by 1.4% from the previous closing price of 239.8. The lawsuit alleged that BD had sold defective products which led to hundreds of deaths and serious injuries due to medication errors. The company was accused of knowingly misrepresenting the safety and accuracy of its pump line and concealing the defects.

Additionally, the company has agreed to implement new corporate compliance measures, including changes to product design and safety testing protocols, as part of their settlement agreement with the government. Live Quote…

About the Company

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Analysis

GoodWhale has conducted an analysis of BECTON DICKINSON & Co., and the results are very encouraging. Our star chart rating for BECTON DICKINSON & Co. is 8/10, indicating a high level of health. This is due to its strong cashflows and low debt, which suggests that the company is capable of sustaining operations in times of crisis. We also find BECTON DICKINSON & Co. to be strong in assets and profitability, and medium in dividend growth. Based on these factors, we have classified BECTON DICKINSON & Co. as a ‘cow’– a type of company that pays out consistent and sustainable dividends. This makes BECTON DICKINSON & Co. an interesting investment opportunity for investors who prioritize consistent dividends. It is also worth noting that BECTON DICKINSON & Co. may also be attractive to investors who favor strong assets and profitability, as well as medium dividend growth. More…

Peers

Becton, Dickinson and Co is a medical technology company that manufactures and sells medical devices, instruments, and supplies. The company operates in three segments: BD Medical, BD Biosciences, and BD Diagnostics. It offers a wide range of products, including syringes, needles, catheters, blood collection devices, IV administration and infusion products, safety products, and sharps disposal systems. The company competes with Penumbra Inc, Teleflex Inc, SheerVision Inc, and other medical technology companies.

– Penumbra Inc ($NYSE:PEN)

Founded in 2002, Umbra is a leading global provider of shading and decorative products. The company’s products are sold in over 120 countries and include a wide range of blinds, shades, drapery hardware, and curtain rods. Headquartered in Toronto, Canada, Umbra employs over 1,200 people worldwide.

Umbra’s market cap is 7.01B as of 2022. The company’s Return on Equity is -2.31%.

The company’s products are sold in over 120 countries and include a wide range of blinds, shades, drapery hardware, and curtain rods.

– Teleflex Inc ($NYSE:TFX)

Teleflex Incorporated is a diversified global provider of medical technologies designed to improve the health and quality of people’s lives. The Company provides solutions for critical care, anesthesia, surgical, urology and emergency medicine.

– SheerVision Inc ($OTCPK:SVSO)

SheerVision Inc is a US-based company that manufactures and sells ophthalmic surgical instruments and devices. The company has a market cap of 140.32k as of 2022 and a Return on Equity of -70.28%. SheerVision’s products are used by eye surgeons to correct vision problems such as nearsightedness, farsightedness, and astigmatism. The company’s products are sold through a network of distributors and retailers worldwide.

Summary

Becton, Dickinson & Co. have recently been involved in a $85 million settlement with the United States Department of Justice over their failure to disclose defects with some of their infusion pumps. For investors, this has the potential to have major implications on the company’s stock moving forward. We can expect to see the stock take a slight hit due to the settlement, however it may not be as severe as initially expected due to the company’s size and financials.

The next few months may be a good time to look at buying into BD’s stock in order to take advantage of a possible dip in price. It is important to do research prior to investing in order to make an informed decision.