MINNEAPOLIS, Nov. 9, 2007 (PRIME NEWSWIRE) -- Lockridge Grindal Nauen P.L.L.P. filed a class action lawsuit against Medtronic, Inc. ("Medtronic" or "Company") (NYSE:MDT) and certain of its officers and directors in the United States District Court for the District of Minnesota, on behalf of investors who purchased Medtronic common stock on the open market from June 25, 2007 through October 15, 2007 (the "Class Period").
The Complaint charges that during the Class Period, Medtronic misrepresented the true facts concerning its Sprint Fidelis defibrillation leads ("Fidelis leads") until October 15, 2007, when the Company disclosed that it would voluntarily suspend distribution of Fidelis leads. Fidelis leads were introduced to the market in September 2004 and, according to an article in The Wall Street Journal on October 30, 2007, by early 2007 "about 90% of new Medtronic defibrillators used Fidelis leads."
By January 2007, Medtronic had received 679 reports of injuries caused by fractures in the Fidelis leads. The number of lead failures grew from a total of 795 injuries reported by April 30, 2007, to a total of 1,053 injuries reported by June 30, 2007. Notwithstanding this increased evidence of severe problems with the leads, Medtronic stated (falsely) in its Form 10-K for fiscal year end April 27, 2007 (filed with the SEC on June 25, 2007) that the Fidelis lead had experienced "strong market acceptance" and "increasing clinical data ... supports these devices." From July 2007 through September 2007, Medtronic continued to receive increasingly frequent reports of lead failures, with the number of reported failures reaching 1,661 by September 30, 2007.
Finally, on October 15, 2007, Medtronic belatedly acknowledged that the increasingly frequent adverse reports were the result of manufacturing defects and suspended distribution of Fidelis leads because of the high incidence of lead fractures. The Company further admitted that it had "identified five patient deaths in which a Sprint Fidelis lead fracture may have been a possible or likely contributing factor." Upon the release of this information, Medtronic's stock dropped $6.33 per share, or 11.2%, on volume of approximately 62.9 million shares.
If you purchased or acquired Medtronic common stock during the Class Period, you may move the Court, no later than January 7, 2008, to be appointed Lead Plaintiff. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as Lead Plaintiff.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca