St. Jude Medical Investor Sues Device Maker

A class-action lawsuit has been filed against St. Jude Medical in a Minnesota court on behalf of all purchasers of St. Jude common stock between April 22 and Oct. 6, 2009, alleging violations of federal securities laws by the medical device manufacturer, according to published reports.

According to the complaint, the plaintiff alleges that St. Jude Medical and some of its officers and executives violated the Securities Exchange Act of 1934 by failing to disclose between April 22, 2009 and October 6, 2009, facts about St. Jude Medical’s true financial condition.

On Oct. 6, 2009, St. Jude Medical, headquartered in St. Paul, Minn., issued a press release announcing “preliminary third quarter results,” for the period ending Oct. 3, 2009. The press release reported that St. Jude Medical was reducing its earnings guidance for the completed third quarter. In response to this announcement, the price of St. Jude Medical common stock declined from $38.24 per share to $33.40 per share on heavy trading volume.

Shares of St. Jude Medical (STJ) traded recently at $39.41 per share, down from its 52-week high of $41.96 per share, $47.97 per share in August 2008, and more than $53 per share in 2006, the foundation said.

The Shareholders Foundation is an investor advocacy group in San Diego, Calif.

“We are aware of the lawsuit and plan to vigorously defend the company with respect to these allegations,” St. Jude Medical said.