Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Medtronic, Inc.
Thursday, June 27, 2013
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Medtronic, Inc.23:30 EDT Thursday, June 27, 2013
SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/medtronic/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Minnesota on behalf of purchasers of Medtronic, Inc. (“Medtronic”) (NYSE:MDT) common stock during the period between December 8, 2010 and August 3, 2011 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/medtronic/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Medtronic and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Medtronic is engaged in medical technology. The Company's INFUSE® Bone Graft (“Infuse”) product, which was approved by the FDA for use in some fusion surgeries in the lower back as well as for some oral and dental uses, became an integral part of Medtronic's Spinal unit after its introduction in 2002, contributing tremendously to the division's growth.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public regarding the use of the Infuse product for reduction of pain and complications associated with treating degenerative disc disease. As a result of defendants' false statements, Medtronic's stock traded at artificially inflated prices during the Class Period, reaching a high of $43.20 per share on May 18, 2011.
On June 23, 2011, Medtronic issued a press release that stated that the Company had received an inquiry from the U.S. Senate requesting information related to the Infuse product. On June 28, 2011, an entire issue of The Spine Journal was devoted to the Infuse product, including the conflicts of interest by researchers who had performed studies on Infuse and the underappreciated risks and side effects associated with Infuse. On this news, Medtronic's stock dropped $0.92 per share to close at $38.09 per share on June 29, 2011, a one-day decline of nearly 3% on volume of 10 million shares. Then, on August 3, 2011, Medtronic announced it would publicly release Infuse data for Yale University researchers to conduct a review. Medtronic agreed to pay Yale $2.5 million to assemble a steering committee, hire two research organizations to review studies of the Infuse product and design a database that could be used by outsiders to get access to the information. On this news, Medtronic's stock price dropped $1.47 per share to close at $32.84 per share on August 4, 2011, a one-day decline of 4% on volume of 11.5 million shares.
According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, included that the Company had engaged in a scheme with certain researchers to downplay the risks and side effects associated with Infuse and that once those risks were fully appreciated by surgeons, use of the product would drop significantly.
Plaintiff seeks to recover damages on behalf of all purchasers of Medtronic common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
800-449-4900 or 619-231-1058