A Medical Device Daily

OrbusNeich Medical (Hong Kong) a developer of devices for the treatment of vascular diseases, reported that it has filed a lawsuit against Boston Scientific (Natick, Massachusetts). The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, asserts claims against Boston Sci for patent infringement, breach of contract and for misappropriation of trade secrets.

The suit seeks unspecified monetary damages and injunctive relief in connection with its claims.

Orbus is the owner by assignment of all right, title, and interest in U.S. patent No. 7,329,277, titled "Stent Having Helical Elements," and U.S. patent No. 6,821,292, titled "Crimpable Intraluminal Endoprosthesis Having Helical Elements."

In its complaint Orbus alleges, among other things, that Boston Sci has infringed these two patents relating to its proprietary luminal stent technology. Specifically the complaint alleges:

— In July 2000, the company entered into a Confidential Disclosure Agreement (CDA) with Boston Sci in advance of discussions related to a potential business relationship;

— In connection with these discussions, Orbus provided Boston Sci with a variety of proprietary stent samples and design details, including improved designs present in Orbus' patent application filed in December 2000, which Boston Sci tested, disassembled and destroyed;

— Orbus filed provisional patents on certain elements of its design on Dec. 11, 2000, and Feb. 9, 2001. The final associated patents were lawfully issued on Feb. 12, 2008, and Nov. 23, 2004, respectively;

— Boston Sci filed a patent application with new stent design drawings that were not included in any of the provisional applications over which this new application claimed priority;

— Boston Sci has been manufacturing and selling its line of Liberté stent products without consideration to Orbus, the original designer of major aspects of the Liberté product architecture, itself.

In other legalities:

• MedQuist (Mount Laurel, New Jersey) a provider of medical transcription services, reported that it has resolved an investigation by the Securities and Exchange Commission regarding the company's historic billing practices.

Under the settlement, the company agreed to the entry of final judgment in prospective litigation by the SEC, including an injunction prohibiting MedQuist from violating federal securities laws. Under the settlement, the company will not pay any fines or penalties to the SEC, and it does not admit to or deny any liability or wrongdoing.

As originally reported by MedQuist in 2004, the SEC opened an investigation regarding the company's historic billing practices after the company announced it had undertaken an internal review of its billing practices and was delaying the filing of its annual report on Form 10-K for the year ended Dec. 31, 2003. MedQuist cooperated fully with the SEC investigation and is pleased to conclude this matter.

Resolution of the SEC investigation follows the company's resolution of the previously disclosed Department of Justice investigation, the previously disclosed settlements reached in the South Broward customer class action, the consolidated medical transcriptionist class action, and the Steiner shareholder class-action lawsuits, and dismissal with prejudice of the Kanter shareholder derivative class action.

Upon court approval and entry of final judgment in the SEC matter and medical transcriptionist litigation, MedQuist will have completely resolved all class-action litigation and governmental investigation matters arising from the internal review of its historic billing practices.

• A former Department of Veterans Affairs (VA) social work associate was convicted by a jury on four counts of honest services mail fraud, violating the criminal conflict of interest statute and making a false statement to agency officials, according to Acting Assistant Atty. Gen. Rita Glavin and U.S. Attorney David Nahmias of the Northern District of Georgia.

On Nov. 14, 2006, Bridgette Davidson and Darrick Frazier, both of Atlanta, were charged in a six-count indictment alleging that the two created and engaged in a scheme to defraud the VA of Davidson's honest services.

Davidson also was charged with one count of violating the conflict-of-interest statue and one count of making a false statement to VA officials investigating the fraudulent scheme.

On Sept. 2, 2008, Frazier pleaded guilty to one count of honest services mail fraud and entered into a plea agreement with the government. In December 2008, he was sentenced to 12 months and one day in prison and ordered to pay $20,200 in restitution.

At sentencing, Davidson faces a maximum sentence of 26 years in prison and a $250,000 fine on each count, as well as $23,400 in restitution. A sentencing date has not yet been scheduled by U.S. District Judge Richard Story.