NEW YORK, June 20, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Southern District of Indiana, on behalf of all persons who purchased or otherwise acquired the securities of Guidant Corporation (NYSE:GDT) ("Guidant" or the "Company") between September 28, 1999 and June 12, 2003, inclusive, (the "Class Period").
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 Guidant securities. A copy of the Complaint is available from the Court or Abbey Gardy, LLP. Please connect us at 1-(800) 889-3701 or 1-(212) 889-3700 or by E-mail at Nkaboolian@abbeygardy.com.
The complaint charges Guidant and and certain of its officers and directors with violations of federal securities laws. Specifically, the alleges that defendants misled the investing public as to the safety, reliability, marketability and financial impact of Ancure, a device Guidant's subsidiary, EndoVascular Technologies ("Endovascular"), developed and marketed for the treatment of abdominal aortic aneurysms. Defendants misled the investing public as to the present risks for its business and finances as a result of product liability lawsuits and government prosecution relating to Ancure. Defendants further misled the investing public and the Food and Drug Administration as to the safety of Ancure by concealing the number of patient injuries or complications that resulted from the use of Ancure. The purpose of the scheme was to, among other things, allow the Company to continue to provide inflated expectations as to Ancure's marketability, and to maintain inflated share price multiples unobtainable had the truth been known.
On June 12, 2003, Guidant announced that it and Endovascular, had settled with the Department of Justice in relation to an investigation of the regulatory misconduct involving the deployment of Guidant's Ancure Endograft System ("Ancure"). Under the terms of the plea agreement Guidant agreed to make a payment of $43.4 million and an additional $49 million civil settlement to the government. Endovascular also agreed to plead guilty to 10 felony counts.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Guidant securities during the Class Period. If you purchased or otherwise acquired Guidant 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 Guidant securities during the Class Period, you may, no later than August 12, 2003 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 Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to 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 Nancy Kaboolian Esq. of Abbey Gardy, LLP at (212) 889-3700 or 800-889-3701. Or E-mail nkaboolian@abbeygardy.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca