Boston Scientific Corp., a worldwide developer, manufacturer and marketer of medical devices, has announced Thursday it reached an agreement with attorneys general of 35 U.S. states and the District of Columbia to settle investigations into the recalls of implantable heart defibrillators.

The defibrilators were marketed by recently acquired longtime competitor Guidant, which Boston Scientific bought for approximately $28 billion. Three Guidant heart devices: Ventak Prizm 2DR Model 1861, Contak Renewal Model H135 and Contak Renewal 2 Model H155 were recalled in a high-profile scandal for suspected malfunctions in 2005.

"Boston Scientific has been working cooperatively with the state attorneys general and is pleased to have reached an amicable agreement," said Chief Executive Officer James Tobin. "This agreement underscores our commitment to being the industry leader in patient safety and in communicating with patients and doctors," Tobin said in an official company statement.

His company will pay nearly $16.8 million but admit no liability, and the warranties for the devices will be extended for an additional six months. Over the years following the 2005 scandal, Guidant recalled or issued safety warrants for more than 88,000 defibrillators and has recalled or issued warnings for about 200,000 pacemakers.

Johnson & Johnson announced that it was acquiring Guidant in December 2004 at a cost of $25.4 billion, but the following scandal in early 2005 has thwarted the deal which allowed Boston Scientific to make in late 2005 a surprise unsolicited bid to acquire Guidant. A bid war followed, which Boston won for almost $28 billion. The deal was completed only in April 2006, and Guidant had to pay a $705 million termination fee to Johnson & Johnson.