Bico Inc. agreed to pay $3.45 million to settle a class-action lawsuit alleging it duped investors into believing the Diasensor – its experimental non-invasive BG meter – was ready for market.
In the spring of 1996, Bico shareholders filed lawsuits after the Food and Drug Administration rejected Bico’s request to market the Diasensor. The rejection came after an FDA advisory panel concluded the Diasensor could be dangerous. A subsequent request to start selling the device also was turned down.
According to the November 16, 2000 issue of the Pittsburgh Post-Gazette, Bico said it agreed to the payment without admitting any wrongdoing.
Bico is currently being investigated by the Justice Department and other federal agencies looking into possible fraud and mismanagement involving some of the same allegations made in the class-action suit.