St. Jude Medical seeks to toss shareholders class action
St. Jude Medical wants a federal judge in Minnesota to toss a shareholders class action lawsuit filed against the medical device company and its management.
St. Jude Medical wants a federal judge in Minnesota to toss a class action lawsuit filed by shareholders after the medical device company's stock took a dive in 2009 when it reduced its guidance.
The lawsuit, filed in March 2010, alleges that St. Jude and its management concealed evidence of slowing demand and lower orders for its cardiac rhythm management products. St. Jude lowered its guidance ahead of its fiscal 3rd-quarter earnings release, citing "lower than expected sales" due to what CEO Daniel Starks called at the time "macro-economic factors coupled with the continues pressures surrounding healthcare reform," according to court documents.
In the period leading up to the lowered outlook, St. Jude "failed to disclose and misrepresented ... material adverse facts, which were known to defendants or recklessly disregarded by them," the lawsuit alleges.