Possis’ Shareholder Lawsuit Dismissed

A Federal District Court Judge in Minnesota dismissed a shareholder lawsuit against medical device manufacturer Possis Medical.

The lawsuit filed in 2005 alleged that Possis misrepresented the performance of its AngioJet System.

In addition the suit claimed that two Possis executive officers sold more than 360,000 personally held shares before news of the failed catheter system was released in August 2004.

While the suit was dismissed there is chance that an appeal or a new trial could be ordered.

Specifically, the lawsuit alleged that between Sept. 24 and August 24, 2004, Robert G. Dutcher, the company’s chief executive officer, along with another executive sold off shares of stock before announcing the system was no more effective than existing products. After making the announcement and lowering guidance, the shares plunged, though they had already sold off more than 360,000 shares at pre-plunge prices, making over $7 million.