A Medical Device Daily
Kendall Law Group reported that a class action has been filed against St. Jude Medical (St. Paul, Minnesota) and certain officers and directors for potential violations of state and federal securities laws. The firm said that it believes that St. Jude misled investors about the performance of the company while the demand for its product was slowing.
On Oct. 6, 2009, St. Jude reported the preliminary results for 3Q09. The announcement indicated that the earnings guidance was being reduced for that quarter.
Stock prices fell nearly 13% after St. Jude presented its preliminary results.
On March 18, a class action lawsuit was filed against St. Jude and certain officers for violations of federal securities laws. According to the complaint, investors were misled by positive statements made while St. Jude was experiencing a slowdown in product demand as hospitals were reducing or delaying purchases or delaying purchasing.
The complaint also alleges that St. Jude was not receiving anticipated orders for cardiac rhythm management devices, therefore lacking reasonable basis for their positive statements.