Investors file lawsuits against medical device companyDecember 28, 2012 3:36 pm Leave your thoughts
St. Jude Medical Inc. is being sued in U.S. District Court by investors that claim the company was not fully honest about concerns that the U.S. Food and Drug Administration (FDA) had regarding the manufacturing of the Durata defibrillator device, according to the Star Tribune.
Three securities lawsuits have been filed against St. Jude and lawyers are looking to increase that number and develop a class-action lawsuit over the medical device's failures. The company used lead wires in its defibrillator machines, which brought reliability issues. In addition, Durata already had earlier devices recalled due to faulty wiring, as well.
The new lead wires were meant to enhance this process and the firm wished to display a more favorable product, but investor lawsuits may show otherwise. In addition, the company has recently experienced a 12 percent decrease in stocks, according to the publication Fierce Medical Devices.
"Despite knowing [in October] that most of the inspection report concerned issues pertaining to Durata, defendants chose to conceal that information from the investment community and released a version [of the report] that redacted the name of the product," Chestnut Cambronne and Barrack, Rodos and Bacine, law firms representing the plaintiffs, stated in a joint press release.
Businesses in Arizona that need assistance with consumer confidence will have to rely on marketing techniques as well as speak with Phoenix business law attorneys specializing in investor claims.
The most important aspect to keep in mind is to be completely honest and reliable regarding one's products and services while speaking with shareholders or providing information to the general public. By following these tactics and obtaining dispute resolution services from a Phoenix-based law firm, any company is bound to succeed.
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