First Circuit -- Mississippi Public Employees v. Boston Scientific Corp.

Mississippi Public Employees v. Boston Scientific Corp.

No reasonable evidence of enough scienter after initial discovery where:

- Manufacturer contemplated change in device which might or might not necessitate a recall - no evidence as to ultimate impact on stock viability.

- Manufacturer insisted that greater physician familiarity with the device would reduce the problem of sticky stents.  (It didn't lull the market to any fundamental problems with the device.)

- Partial recall publicly described by CEO as "not tip of the iceberg" - CEO said privately that he wasn't confident the situation was under control.

A/C Privilege -

The fact that discussions were about how to avoid future problems does not remove the privilege.

No t improper for company to direct all relevant internal communication via the GC's office - such funnelling does not manufacture privilege.