HOUSTON, June 20, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of Indiana, Indianapolis Division, on behalf of purchasers of Guidant Corporation ("Guidant" or the "Company") (NYSE:GDT) publicly traded securities during the period between June 23, 1999 and June 12, 2003, inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm.
The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements throughout the Class Period. Specifically, the complaint alleges that defendants issued numerous positive statements regarding the performance of ANCURE, a device used for the treatment of abdominal aortic aneurysms (AAA). As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, which were known, or should have been known to defendants at the time they were made: (a) that the Company had violated Food & Drug Administration ("FDA") regulations by marketing and selling a device (ANCURE) which had not been approved by the FDA; (b) that the Company failed to report to the FDA that problems with ANCURE had resulted in more than 2,600 injuries, including 12 deaths; and (c) that as a result of the Company's actions, the Company would be subject to additional government scrutiny, thereby negatively impacting its future earnings. On June 12, 2003, the Company announced that its subsidiary, EndoVascular Technologies (EVT), entered into a settlement agreement with the U.S. Department of Justice relating to certain problems with ANCURE(r). Specifically, the article stated that under the terms of the agreement, EVT agreed to make a payment of $43.4 million and an additional $49 million civil settlement to the government. EVT also agreed to plead guilty to 10 felony counts, including nine for shipping misbranded products and one count of a former employee making false statements to the government. Prior to the disclosure of this adverse information, the Individual Defendants and other Guidant insiders sold more than $26.4 million of their personally-held shares of Guidant stock to the unsuspecting public.
If you purchased Guidant securities between June 23, 1999 and June 12, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than August 12, 2003. If you are a member of this class, you can join this class action by contacting Emerson Poynter via e-mail or calling toll-free.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll free or e-mail the firm. John G. Emerson, 830 Apollo Lane, Houston, TX 77058. Phone (281) 488-8854.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.