St. Jude Medical, Inc. (NYSE:STJ) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
An investor in NYSE:STJ shares filed a lawsuit in the U.S. District Court for the District of Minnesota against St. Jude Medical, Inc. over alleged Violations of Federal Securities Laws in connection with certain statements over its Riata and Riata ST defibrillator and its QuickSite and QuickFlex Left-Ventricular.
According to the complaint the plaintiff alleges on behalf of purchasers of the securities St. Jude Medical, Inc. (NYSE:STJ), who purchased or otherwise acquired St. Jude securities between December 15, 2010 and April 4, 2012, that St. Jude Medical, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934.
St. Jude Medical, Inc. reported that its Total Revenue rose from $4.36billion for the 53weeks period ending on Jan 3, 2009 to $5.61billion for the 52weeks period ending on Dec. 31, 2011 and its Net Income increased over the same time periods from $353.02million to $825.79million.
Shares of St. Jude Medical, Inc. (NYSE:STJ) rose from as low as $27.64 per share on November 21, 2008 to as high as $53.44 per share in April 29, 2011.
Specifically, the plaintiff alleges that the defendants failed to disclose and misrepresented that St. Jude Medical's Riata and Riata ST defibrillator leads were associated with short circuits and protruding wires, and that its QuickSite and QuickFlex Left-Ventricular leads also suffered from protruding wires. A "lead" is a wire that connects a defibrillator to the heart.
The plaintiff says that between December 15, 2010 and April 4, 2012, the defendants allegedly told investors that two of St. Jude Medical's defibrillator leads, the Riata and Riata ST electrical wire, had been observed to wear through the silicone casing meant to contain them and protrude into the body and St. Jude Medical thereafter discontinued sales of the Riata and Riata ST.
However, so the lawsuit, the defendants allegedly failed to disclose the full extent of the problems with its products.
On March 27, 2012,an article disclosed the results of an analysis performed by an independent researcher, which indicated that the Riata and Riata ST caused short circuits.
Then on April 4, 2012, so the plaintiff, the defendants disclosed that the QuickSite and QuickFlex Left-Ventricular leads also suffered from the same protruding wire defect as the Riata and Riata ST and as a result, sales of the QuickSite and QuickFlex Left-Ventricular leads were also discontinued.
NYSE:STJ shares fell from as high as $44.31 per share on March 30, 2012 to as low as $37.83 per share on April 23, 2012.
NYSE:STJ shares closed on June 14, 2012 at $35.59 per share.