October 15, 2014 by Val Kennedy
A federal judge green-lights a shareholders lawsuit over its Infuse bone-growth protein that accuses Medtronic and its management, including former CEO William Hawkins, of misleading investors about Infuse’s safety risks and commercial upside.
Although he tossed some claims, Judge John Tunheim ruled that the suit can proceed against Medtronic and several of its top executives, including former chairman & CEO William Hawkins, CFO Gary Ellis and CSO Dr. Richard Kuntz. The plaintiffs include institutional investors West Virginia Pipe Trades Health & Welfare Fund, Union Asset Management Holding AG and Employees’ Retirement System of Hawaii.
The suit alleges that Medtronic executives misled investors about Infuse’s commercial prospects and safety profile; the complaint also alleges that Hawkins misled analysts about the prospects of a planned follow-on product called Amplify.