HARTFORD, Conn., Nov. 9, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Minnesota on behalf of all persons who purchased the common stock of Medtronic, Inc. ("Medtronic" or the "Company") (NYSE:MDT) between June 25, 2007 through October 15, 2007, inclusive (the "Class Period").
The Complaint charges that Medtronic violated federal securities laws by issuing false and misleading statements concerning its Sprint Fidelis defibrillation leads ("Fidelis leads"). By January 2007, Medtronic had received 679 reports of injuries caused by fractures in the Fidelis leads. The number of lead failures grew from a total of 795 injuries reported by April 30, 2007, to a total of 1,053 injuries reported by June 30, 2007. Notwithstanding this increased evidence of severe problems with the leads, Medtronic stated in its Form 10-K for fiscal year end April 27, 2007 (filed with the SEC on June 25, 2007) that the Fidelis lead had experienced "strong market acceptance" and "increasing clinical data ... supports these devices." From July 2007 through September 2007, Medtronic continued to receive increasingly frequent reports of lead failures, with the number of reported failures reaching 1,661 by September 30, 2007.
On October 15, 2007, Medtronic acknowledged that the increasingly frequent adverse reports were the result of manufacturing defects and suspended distribution of Fidelis leads because of the high incidence of lead fractures. The Company further admitted that it had "identified five patient deaths in which a Sprint Fidelis lead fracture may have been a possible or likely contributing factor." On this news, Medtronic stock dropped $6.33 per share, or 11.2%.
If you are a member of the class, you may, no later than January 7, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.