COLCHESTER, Conn., Dec. 27, 2005 (PRIMEZONE) -- Scott+Scott, LLC (http://www.scott-scott.com) initiated a securities fraud class action on November 3, 2005, in the United States District Court for the Southern District of Indiana against Guidant Corp. ("Guidant") (NYSE:GDT) and certain individual defendants (No. 05CV1658). Guidant securities purchasers between December 15, 2004 and November 3, 2005, inclusive (the "Class Period") are putative class members. Guidant claims to provide therapeutic medical solutions for customers, patients, and healthcare systems worldwide.
If you purchased Guidant securities during the Class Period, you may, no later than January 3, 2006, move the Court to be appointed lead plaintiff. If you wish to discuss this action or have questions concerning this notice or your rights as a class member, you may contact this firm for more information. Scott+Scott will provide class members with case materials, answer all questions regarding participation and assist investors with other services the firm provides. There is no cost or fee to you. Contact Scott+Scott partner Neil Rothstein (nrothstein@scott-scott.com, 800/332-2259, ext. 22 or cell 619/251-0887) or partner David R. Scott (drscott@scott-scott.com, 800/404-7770). Institutional Investors may also contact the firm at InstitutionalInvestors@scott-scott.com.
The complaint alleges that Guidant and certain of its officers and directors violated provisions of the Securities Exchange Act of 1934, causing the Company's stock price to become artificially inflated. On December 15, 2004, Guidant entered into a $24.5 billion merger deal with Johnson & Johnson. According to the complaint, while the Company pointed to its defibrillator business as a key component of that deal, it concealed from investors significant unaddressed product defect and liability issues of the Company's implantable defibrillator product lines.
On June 17, 2005, the FDA issued a nationwide recall notification impacting Guidant's implantable defibrillators and cardiac resynchronization therapy defibrillators. Within that notification, the FDA advised the public that the malfunction of Guidant's devices could lead to a serious, life-threatening event for a patient. On July 18, 2005, the FDA published a "Recall -- Firm Press Release" on its website, that then revealed the Company's knowledge of pacemaker-related defects. In the recall publication, Guidant warned physicians and patients to seek replacement of at least nine different cardiac pacemaker models and product lines.
Johnson & Johnson representatives subsequently revealed to the investment community that, as of October 18, 2005, it was seeking alternatives to the merger deal in earnest, as a direct result of the "developments" at Guidant. On November 2, 2005, Johnson & Johnson warned that it might withdraw from the merger deal due to broad product recalls and a regulatory agency investigation. Finally, on November 3, 2005, the Attorney General of the State of New York filed a complaint, alleging "repeated and persistent fraud" by the Company in connection with its defibrillator sales. As investors learned the truth about the allegations of fraud made by the State of New York, the Company's shares tumbled from $60.40 on November 2, 2005, to as low as $57.05 per share in heavy trading.
The plaintiff is represented by Scott+Scott, LLC, which has significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Cases currently being litigated and/or investigated by Scott+Scott, LLC include: DHB Industries, Inc.; Boston Scientific Corp.; Refco, Inc.; Cott Corp.; Packeteer Inc.; Mercury Computer Systems Inc.; TNS Inc., and International Rectifier Corp., among others.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca