MINNEAPOLIS, April 13, 2006 (PRIMEZONE) -- On April 10, 2006, the law firm of Lockridge Grindal Nauen P.L.L.P. filed a lawsuit on behalf of all persons who purchased or otherwise acquired the common stock of St. Jude Medical, Inc. ("St. Jude" or the "Company") (NYSE:STJ) between January 25, 2006 and April 4, 2006, inclusive, (the "Class Period".) The action was filed in the United States District Court for the District of Minnesota, and names as defendants the Company as well as certain senior officers and directors.
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."
Plaintiffs' counsel, Lockridge Grindal Nauen P.L.L.P., has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. The firm has offices in Minneapolis and Washington, D.C.
If you are a member of the class, you may, no later than June 9, 2006, move the Court to serve as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, however, affected by your decision whether to serve as lead plaintiff.
If you have questions about the lawsuit or would like to discuss it with an attorney, please call or e-mail:
Karen H. Riebel, Esq. (khriebel@locklaw.com) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca