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Securities
Fraud
Class Action

City of Pontiac General Employee's Retirement System v. Stryker Corporation, et al.

Published: May 19, 2012 | Result Date: Mar. 30, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 1:10-cv-00520-GJQ Bench Decision –  Dismissal

Court

USDC Michigan


Attorneys

Plaintiff

Joseph T. Muzingo

Samuel H. Rudman
(Robbins, Geller, Rudman & Dowd LLP)

David A. Rosenfeld
(Weinberg, Roger & Rosenfeld PC)

Gerard J. Andree


Defendant

Boris Feldman
(Freshfields Bruckhaus Deringer LLP )

D. Andrew Portinga


Facts

A class action was filed against Stryker Corp., a medical technology company, alleging securities fraud.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that defendant achieved its goal of annual earnings growth by failing to keep up with quality and regulatory compliance spending. Further, plaintiffs claimed that defendant did not fully disclose compliance issues and remediation costs following receipt of warning letter by the FDA.

DEFENDANT'S CONTENTIONS:
Defendant argued that the allegations were not meritorious, the safe harbor provision of the Private Securities Litigation Reform Act protected defendant's financial projections, and there was a lack of loss causation.

Result

The court dismissed the lawsuit with prejudice.


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