Shareholder Class Action Filed Against Medtronic, Inc. by The Law Firm of Schiffrin Barroway Topaz & Ke...(5) that this medical device recall would...),Health

Date:12/14/2007

5) that this medical device recall would have a significant financial impact on the Company's financial statements in subsequent quarters; (6) that the Company lacked adequate internal and financial controls; and (7) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

On October 15, 2007, the Company shocked investors when it disclosed that it had received a significant, and an increased, number of adverse reports about the Company's Sprint Fidelis defibrillator leads, which were attributable to manufacturing defects and resulted in significant safety concerns. The Company admitted that it had identified hundreds of malfunctions, serious injuries, and five patient deaths where a Sprint Fidelis lead fracture "may have been a possible or likely contributing factor." Additionally, the Company reported that it had suspended the distribution of its Sprint Fidelis leads, and instructed physicians to stop implanting the leads and return all unused products. Subsequently, the Food and Drug Administration ("FDA") issued a notice stating that it considered such a product "removal action" to be a "medical device recall," which the FDA terms as "an action taken when a medical device is defective, when it could be a risk to health, or when it is both defective and a risk to health." On this news, the Company's shares declined $6.33 per share, or 11.2 percent, to close on October 15, 2007 at $50.00 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the Un
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SOURCE Schiffrin Barroway Topaz & Kessler, LLP Copyright©2007 PR Newswire. All rights reserved

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