NEW YORK, April 11 /PRNewswire/ -- Abbey Spanier Rodd Abrams & Paradis, LLP commenced a Class Action lawsuit in the United States District Court for the District of Minnesota on behalf of a class (the "Class") of all persons who purchased or acquired securities of St. Jude Medical, Inc. ("St. Jude" or the "Company") between January 25, 2006 and April 4, 2006 inclusive (the "Class Period").
For more information about this case please call 1-800-889-3701 or email Nancy Kaboolian at
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of St. Jude securities. Defendants include St. Jude and certain of its top officers and directors. The Complaint alleges that the defendants made misstatements and omitted information regarding the sales success and prospects of a major St. Jude product, its implantable cardioverter defibrillator systems ("ICD"). On January 25, 2006, St. Jude reported that Fourth quarter implantable cardioverter defibrillator (ICD) product sales were $280 million, a 62% increase over the comparable quarter of 2004 and that ICD product sales for the full-year 2005 were $1.007 billion, representing a 72% increase over 2004. The Company emphasized that these "results continued to underscore the competitiveness of St. Jude Medical's ICD product portfolio and program." On April 4, 2006, St. Jude shocked the market by announcing that its financial and operating results were well below analysts' expectations and the declining sales of ICDs. On this news, shares of St. Jude fell $5.05 per share, on extremely high volume, to close at $36.25.
The Complaint alleges that St. Jude pushed sales of ICDs into the fourth quarter of 2005 so as to inflate the stock price and achieve extraordinary personal benefits for top insiders, such as CEO Daniel J. Starks, who sold an unusual number of shares in the open market in the early months of 2006, and received a substantial boost in his compensation for 2005's performance, including a grant of 216,000 restricted shares worth (at the time) approximately $10 million. In response to the Company's April 4, 2006 announcement, Goldman Sachs analyst Lawrence Keusch said "in the 2006 first quarter, there were no changes made to reimbursements, no significant product recalls, and no rash of deaths due to defibrillators among other issues that would prompt an industry-wide demand decline. It is difficult for us to support the notion that the market took a steep reversal during the quarter."
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired St. Jude securities during the Class Period. If you purchased or otherwise acquired St. Jude securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased St. Jude securities during the Class Period, you may, no later than June 9, 2006 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Spanier Rodd Abrams & Paradis, LLP has been retained to represent the Class. The attorneys at Abbey Spanier Rodd Abrams & Paradis, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
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