NEW YORK, July 3, 2013 LawFuel.com – Class Action Newswire — Pomerantz Grossman Hufford Dahlstrom & Gross LLP announces the filing of a class action lawsuit against Medtronic, Inc. (“Medtronic” or the “Company”) (NYSE:MDT) and certain of its officers.
The class action, filed in United States District Court, District of Minnesota, and docketed under 13-cv-01739, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Medtronic between December 8, 2010 and August 3, 2011 both dates inclusive (the “Class Period”). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Medtronic securities during the Class Period, you have until August 26, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Medtronic manufactures and sells device-based medical therapies worldwide. The company operates in two segments, Cardiac and Vascular Group, and Restorative Therapies Group.
The Complaint alleges that throughout the Class Period, Defendants issued false and/or misleading statements regarding the use of the Infuse product for reduction of pain and complications associated with treating degenerative disc disease. Infuse contains a recombinant human bone morphogenetic protein, rhBMP-2, for spinal, trauma and oral maxillofacial applications. As a result of defendants’ false statements, Medtronic’s stock traded at artificially inflated prices during the Class Period, reaching a high of $43.20 per share on May 18, 2011.
On June 23, 2011, Medtronic issued a press release acknowledging that the U.S. Senate had requested information regarding Infuse. Then on June 28, 2011, an issue of The Spine Journal identified conflicts of interest concerning the researchers who had performed studies on Infuse. On this news, shares of Medtronic declined $0.92 or 3% to close at $38.09 per share on June 29, 2011.
On August 3, 2011, Medtronic announced it would release Infuse data to the public and agreed to pay $2.5 million to Yale University so that researchers might conduct a review of previous studies. According to the complaint, the true facts, which defendants concealed from the investing public during the class period, included that the Company had engaged in a scheme with certain researchers to downplay the risks and side effects associated with Infuse and that once those risks were fully appreciated by surgeons, use of the product would drop significantly. On this news announcement, shares of Medtronic fell $1.47 or 4% percent to close at $32.84 per share on August 4, 2011.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.