St. Jude Medical, Inc. Securities Fraud Litigation
June 12, 2015 – Zimmerman Reed is pleased to announce that the United States District Court, District of Minnesota granted final approval of a $50 million settlement in a class action against St. Jude Medical, Inc. on behalf of investors. The lead plaintiff and class representative was Building Trades United Pension Trust Fund, who overcame defendants’ attempts to obtain motion to dismiss, summary judgment, and decertification of the class. The case was aggressively litigated up to the eve of the trial.
On March 18, 2010, investors filed a class action lawsuit against St. Jude Medical, Inc. and certain of its officers and executives (“Defendants”), alleging violations of the Securities Exchange Act of 1934. The lawsuit was commenced in the United States District Court for the District of Minnesota on behalf of all persons who purchased or otherwise acquired the securities of St. Jude Medical, Inc. between April 22, 2009 and October 6, 2009 (“Class Period”).
Specifically, the complaint alleged that throughout the Class Period, Defendants: (i) failed to disclose the extent to which St. Jude’s business was reliant upon heavily discounted, end-of-quarter bulk sales to meet forecast expectations for its performance; (ii) issued materially false and misleading financial statements that failed to properly account for revenues from bulk sales and associated rebates and other inducements; (iii) issued financial guidance to investors that was contradicted by St. Jude’s internal forecasts; and (iv) concealed the extent to which an ongoing economic recession was affecting or could potentially affect sales of and demand for the Company’s products.
On June 16, 2010, Magistrate Judge Jeffrey J. Keyes appointed Building Trades United Pension Trust as Lead Plaintiff and approved its selection of Robbins Geller Rudman & Dowd as Lead Counsel and Zimmerman Reed as Liaison Counsel.
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