COLORADO SPRINGS, Colo. (AP) — Medical laser maker Spectranetics Corp. said Tuesday it has settled a securities class-action lawsuit and a stockholder derivatives case.
The class action lawsuit filed against the company and certain executives had alleged that Spectranetics broke federal securities law by making false and misleading statements and omissions. Filed in the U.S. District Court for the District of Colorado, the lawsuit was brought on behalf of shareholders who bought the company's stock between March 16, 2007 and Sept. 4, 2008. Spectranetics said it will pay $8.5 million, which will be funded by its insurers.
Under the proposed derivative settlement, plaintiffs will dismiss the case with prejudice and release claims. Spectranetics will pay lawyer fees amounting to $350,000.
Spectranetics said it continues to deny any liability or wrongdoing.
The company also said that three Spectranetics stockholders filed an individual lawsuit on May 28 asserting various federal and state claims arising out of the same facts alleged in the securities class action. Two of the three stockholders who brought this case had previously moved unsuccessfully to be appointed as lead plaintiff in the securities class action where they claimed a loss of $1.27 million. Spectranetics said it intends to defend this lawsuit "vigorously."