Shareholder Class Action Filed Against St. Jude Medical, Inc. by the Law Firm of Kessler Topaz Meltzer & Check, LLP

RADNOR, Pa., June 14, 2012 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of purchasers of the securities of St. Jude Medical, Inc. (NYSE:STJ) ("St. Jude" or the "Company"), who purchased or otherwise acquired St. Jude securities between December 15, 2010 and April 4, 2012, inclusive (the "Class Period").  If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases_details.php?id=76

Members of the class may, not later than August 13, 2012, move the Court to serve as lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 

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 Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].  For additional information about this lawsuit, or to join the class action online, please visit www.ktmc.com.

The Complaint charges St. Jude and certain of its officers and directors with violations of the Securities Exchange Act of 1934.  St. Jude develops, manufactures and distributes cardiovascular medical devices.  More specifically, the Complaint alleges that the defendants failed to disclose and misrepresented that the Company's Riata and Riata ST defibrillator leads were associated with short circuits and protruding wires, and that the Company's QuickSite and QuickFlex Left-Ventricular leads also suffered from protruding wires. A "lead" is a wire that connects a defibrillator to the heart.

During the Class Period, the defendants told investors that two of the Company's defibrillator leads, the Riata and Riata ST electrical wire, had been observed to wear through the silicone casing meant to contain them and protrude into the body.  St. Jude thereafter discontinued sales of the Riata and Riata ST.  However, the defendants failed to disclose the full extent of the problems with its products.  First, the defendants failed to disclose that the Riata and Riata ST defibrillator leads were also associated with short circuits unrelated to the protruding wires.  Although less frequent than the protrusions, the short circuits were much more dangerous.  Second, the defendants failed to disclose that two other leads sold by the company, the QuickSite and QuickFlex Left-Ventricular leads, also suffered from the same protruding wires that plagued the Riata and Riata ST.

On March 27, 2012, The New York Times disclosed the results of an analysis performed by an independent researcher, Dr. Robert Hauser, which indicated that the Riata and Riata ST caused short circuits.  However, the defendants vehemently challenged these findings, thus maintaining the artificial inflation in St. Jude's stock.

On April 4, 2012, the defendants finally disclosed that the QuickSite and QuickFlex Left-Ventricular leads also suffered from the same protruding wire defect as the Riata and Riata ST.   As a result, sales of the QuickSite and QuickFlex Left-Ventricular leads were also discontinued.  Following these disclosures, the closing price of St. Jude's stock dropped from $43.80 to $38.91 over three trading days, a decline of over 11 percent.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

SOURCE Kessler Topaz Meltzer & Check, LLP