A Medical Device Daily

Medtronic (Minneapolis) reported that its vascular and spinal businesses in Santa Rosa, California, have filed a patient infringement suit vs. Kyphon (Sunnyvale, California), a competitor in these spaces. The suit, seeking injunctive relief and monetary damages, was filed in the U.S. District Court for the Northern District of California.

The suit claims Kyphon is and has been infringing on "a minimum" of four patents related to balloon dilatation catheters and spinal treatment. The Medtronic patents involved include U.S. patent nos. 4,820,349, 5,759,191, 6,179,856 and 6,096,038. Medtronic acquired the '038 patent from Gary Michelson, MD.

The suit also asks for a declaratory judgment that five Kyphon patents are inapplicable to Medtronic's innovative new osteotome device that treats spinal disorders without the use of a balloon.

"We have completed a thoughtful and comprehensive review of the patents and as a result feel we have to take this action to stop Kyphon from benefiting from our intellectual property," said Pete Wehrly, senior vice-president and president, Medtronic's Spine and Navigation business. "We are also seeking the declaratory judgment to set aside any concerns regarding any legal matters that could potentially interrupt our future business."

Kyphon develops devices used for the restoration of spinal function using minimally invasive techniques.

In other legal action: The firm of Cohen, Milstein, Hausfeld & Toll reported that it has filed a class action complaint in the U.S. District Court for the Middle District of Florida on behalf of purchasers of the stock of PainCare Holdings (Orlando, Florida) during the period from Aug. 27, 2002, through March 15, 2006.

This is one of several class actions that have been filed against PainCare, a provider of pain-focused medical and surgical solutions and services.

The complaint charges PainCare and certain officers with issuing false and misleading statements regarding its financial results, thereby causing the company's stock to be traded at inflated prices during the class period, to a high of $5.25 a share on April 12, 2005.

Then, on March 15, the company reported that, as a result of on-going discussions with the SEC concerning accounting irregularities, it will restate all of its previously-issued financial statements - from the company's inception in 2000 to the present. On this news, PainCare's stock plunged to as low as $2.50 a share on the first day of trading following the announcement and has continued to decline sharply, closing at $1.69 a share on March 22.