LOS ANGELES, May 31, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the District of Minnesota on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of St. Jude Medical, Inc. ("St. Jude Medical" or the "Company") (NYSE:STJ) between January 25, 2006 and April 4, 2006 (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges St. Jude Medical and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning St. Jude Medical's business and operations caused the Company's stock price to become artificially inflated, inflicting damages on investors. St. Jude Medical engages develops, manufactures and distributes cardiovascular medical devices for cardiac rhythm management and implantable neuromodulation devices, including implantable cardioverter defibrillators ("ICDs"). The Complaint alleges that during the Class Period defendants knew or recklessly disregarded but failed to disclose that: (i) Company reports tracking 2005 growth in the sales of ICDs of between 62% and 92% were erroneous, false and misleading; (ii) there was no objective reason to communicate the "competitiveness" of St. Jude Medical's ICD product portfolio and program, given the true patterns and trends in the marketplace for sales of ICDs; (iii) as a result of the stuffing of the Company's distribution channels with inventory, the Company had effectively pushed 2006 revenues from ICD sales into the fourth quarter of 2005; (iv) base salary and bonus compensation awarded to the Company's officers, including defendants, was dramatically increased, as a direct result of the shift of revenues from ICD sales between quarters resulting from the Company's channel-stuffing activities; and (v) stock sales by Company insiders, including defendants, met with artificially inflated prices, as a direct result of the shift of revenues from ICD sales between quarters resulting from the Company's channel-stuffing activities.
On April 4, 2006, St. Jude Medical issued a press release, pointing to an unexpected decline in sales for the Company's ICDs. As a result of this news, the price of St. Jude Medical shares fell 12.2%, on unusually high volume, falling from $41.30 per share on April 4, 2006 to close at $36.25 per share on April 5, 2006 -- a one-day drop of $5.05 per share -- on volume of 51.6 million shares, which was nearly thirteen times the average daily trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than June 9, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca