HARTFORD, Conn., April 10, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, 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 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 Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants omitted information regarding the sales success and prospects of a key St. Jude product, its implantable cardioverter defibrillator systems (ICD's). The Complaint asserts that the Company pushed sales of ICD's into the fourth quarter of 2005 so as to inflate the stock price and achieve extraordinary personal benefits for top insiders, including the CEO, 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.
On April 4, 2006, St. Jude revealed that it would materially miss sales projections made just weeks earlier. The Company also announced that it was undertaking an intensive customer review to determine the cause of its sales shortfall. On this news, St. Jude stock fell to $36.25 on April 4, 2006, down $5.05 from the previous day's closing price of $41.30.
If you are a member of the class, you may, no later than June 9, 2006, 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 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 toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.