Boston Scientific Ordered to Finish Scuttled Data-Fraud Deal (1)

Boston Scientific Corp. must complete a $275 million buyout of Channel Medsystems Inc., a judge said, ruling the deal couldn’t be canceled just because a former Channel executive submitted false data to federal regulators about its flagship product.

Delaware Chancery Judge Andre Bouchard said Wednesday Boston Scientific couldn’t prove ex-Channel Vice President Dinesh Shankar’s false submissions about its Cerene menstruation treatment provided proper grounds to cancel the buyout under the acquisition agreement. As a result of the judge’s ruling, Boston Scientific must acquire the Cerene system.

“Shankar’s fraud did not compromise Channel’s quality system or its clinical study in such ...