A Medical Device Daily Staff Report

A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all common stock purchasers of AtriCure (West Chester, Ohio) related to the company’s initial public offering, with the class period from Aug. 4, 2005 through Feb. 16, 2006, inclusive (Medical Device Daily, Aug. 12, 2005).

The complaint charges the registration statements in connection with the initial public offering, about Aug. 4, 2005, failed to disclose that the Cleveland Clinic (Cleveland, Ohio) — where a significant portion of procedures with the company’s products were being performed — was an investor in the company and that doctors from the clinic had been paid consultants to the company.

On Feb. 16, 2006, AtriCure reported financial results for 4Q05 and the fiscal year ended Dec. 31, 2005, saying that it was experiencing a “negative impact” on its business due to the revelations concerning the connection with the clinic, and AtriCure’s common stock rice dropped from $10.36 a share to $8.04 a share.

Plaintiffs are represented by Schiffrin & Barroway (Radnor, Pennsylvania).

A similar lawsuit was filed against Atricure by the law firm of Lerach Coughlin Stoia Geller Rudman & Robbins (New York/Washington).

• Rochester Medical (Stewartville, Minnesota) and Hollister (Berkshire, UK) have agreed to terminate the Common Interest and Defense Agreement which they entered into in September 2004 for the defense of Rochester’s Hydrophilic Intermittent catheter technology with respect to the patent infringement action in the UK between Coloplast (Humlebaek, Denmark) and Hollister.

Hollister and Rochester have agreed to release each other from any claims under the Common Interest and Defense Agreement. Rochester said it will not be required to pay any additional legal fees under the terminated agreement.

Anthony Conway, president/CEO of Rochester, said, “Hollister has been an excellent customer of Rochester Medical since 1994 and we look forward to a continued strong relationship.”

The companies also amended their agreement for the supply of male external catheters (MECs). Under the amended 2003 OEM/Private Label Agreement Rochester will continue to supply Hollister with Hydrophilic Intermittent catheters to be sold under Hollister’s brand. The amended agreement has a two year term.

Rochester manufactures disposable medical catheters and devices for urological and continence care.

Hollister manufactures healthcare products in more than 90 countries.

• The law firm of Klafter & Olsen (Washington) reported filing a class action complaint against Warner Chilcott (Morris Plains, New Jersey) in the U.S. District Court for the Southern District of New York on behalf of investors who purchased the securities of Warner Chilcott from Sept. 20, 2006, through Sept 26, 2006.

The complaint alleges that Warner Chilcott’s registration statement and prospectus issued in connection with its IPO failed to disclose that shortly before the IPO, the company had stopped shipping Ovcon 35, its top-selling birth control pill and a primary source of its revenue.