Becton Dickinson pays $175M for misleading investors about flawed IV pump system

Becton Dickinson (BD) medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission (SEC) said.

Manufacturers are required to get approvals from the Food and Drug Administration (FDA) for complex medical devices like infusion pumps.

The FDA approval process involves submitting detailed data showing a device is safe and effective. BD, one of the largest device manufacturers in the world, with 70,000 employees, received 10 percent of its profits from sales of the pump.