ATLANTA, June 18, 2003 (PRIMEZONE) -- Chitwood & Harley, LLP announces that it has filed a class action lawsuit, civil action number 01:03-cv-0892, in the United States District Court for the Southern District of Indiana, on behalf of the purchasers of securities of Guidant Corporation, ("Guidant" or the "Company"), (NYSE:GDT), between June 23, 1999, and June 12, 2003, inclusive (the "Class Period"). The suit is brought against Guidant Corp., Keith E. Brauer, Ronald W. Dollens, A. Jay Graf, Mark C. Bartell, Beverly A. Huss, and Jay Watkins. If you have questions concerning this matter or your rights, please click on Guidant on our website, www.classlaw.com where a complaint is available, or email or call Jennifer Morris at jlm@classlaw.com or 1-888-873-3999 ext 6883.
The complaint charges 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 materially false and misleading statements to the market between June 23, 1999 and June 12, 2003.
Guidant designs, develops, manufactures and markets therapeutic medical devices for the treatment of cardiovascular and vascular diseases, including the ANCURE ENDOGRAFT System, a medical device used to treat aneurysms. The complaint alleges that, during the Class Period, Guidant failed to disclose the following facts, among others: (a) in violation of Food & Drug Administration ("FDA") regulations, the Company encouraged a dangerous usage of the ANCURE ENDOGRAFT System that had not been authorized by the FDA; (b) the Company failed to file 2,628 Medical Device reports -- each representing an incident in which the ANCURE ENDOGRAFT System malfunctioned or its use was associated with death or serious injury; (c) as a result of the foregoing conduct, the Company was the target of a criminal investigation; and (d) the Company had not properly reserved for the consequences of its massive criminal and civil liability nor adjusted its recorded goodwill to account for the inevitable harm to its reputation that would ensue.
On June 12, 2003, the U.S. Attorney's Office announced that EVT, Guidant's wholly owned subsidiary, had pled guilty to 10 felonies and agreed to pay $92.4 million to settle criminal and civil charges that it covered up thousands of incidents, including 12 deaths and 57 emergency procedures, in which the ANCURE ENDOGRAFT System malfunctioned.
The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is August 12, 2003. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com, by clicking on Guidant.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on can be found on the Class Action Newsline at www.primezone.com/ca