The Spectranetics Corporation - Securities Class Action

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Stanford Law School

The Spectranetics Corporation Summary: According to a press release dated September 23, 2008, the Complaint charges Spectranetics and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's business and operations caused Spectranetics' stock price to become artificially inflated, inflicting damages on investors. Spectranetics develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system for use with Spectranetics' excimer laser system. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Spectranetics' business and operations were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements failed to disclose or indicate the following: (1) that the Company lacked effective regulatory compliance controls; (2) that the Company was illegally and extensively marketing its laser and catheters for uses that had not been approved by the United States Food and Drug Administration ("FDA"); (3) that the Company failed to report to the FDA that tests found its laser caused significant damage to stents it was using in the clinical trial; (4) that the Company illegally tested several products on patients without FDA approval; (5) that the Company lacked effective internal controls; and (6) as a result of the above, the Company's financial results were materially inflated.

On September 4, 2008, Spectranetics shocked investors when reports surfaced that Federal Officials had served search warrants on the Company and NASDAQ halted trading of Spectranetics' common stock. That evening, Spectranetics issued a press release disclosing that the Company was jointly served by the FDA and U.S. Immigration and Customs Enforcement with a search warrant relating to the promotion, use, testing, marketing, and sales of certain Spectranetics products, and payments made to medical personnel and an identified institution for this application. The search warrant also requested information about two post-market studies completed during the period from 2002 to 2005 and payments to medical personnel in connection with those studies, as well as information regarding compensation packages for certain Spectranetics personnel.

On this news, NASDAQ subsequently halted trading of shares in Spectranetics, but only after Company shares had already fallen $4.27 per share, or 47 percent, to $4.73 per share on unusually heavy trading volume. The following day, September 5, 2008, shares of Spectranetics were allowed to resume trading and closed at $5.63 per share, a decline of $3.37 per share, or 37 percent, from the September 3, 2008 closing price of $9.00 per share.

On January 16, 2009, an order granting motions to consolidate the cases was approved under the docket No. 08-CV-02048.

On June 15, 2009, an order on the plaintiffs’ appointment of lead plaintiff and approval of selection of co-lead counsel were granted for the putative class.

On August 04, 2009, an amended complaint was filed by the lead plaintiff against the defendants was filed in this civil action.

On September 18, 2009, proposed pretrial orders for motion to dismiss and motion seeking judicial notice in support by defendants were granted by the Court.

On January 27, 2010, a petition for writ of mandamus was denied by the Appellate Court.

On February 10, 2010, an order by the lead plaintiffs’ unopposed motion to serve supplemental consolidated class action complaint & memorandum of law in support was granted. On the same day, a supplemental class action complaint was filed by the plaintiffs.

On September 07, 2010, a Stipulation of Settlement was submitted to the Court by the parties.

On September 13, 2010, the Court issued an Order Preliminarily Approving Settlement and Approving the Form and Manner of Notice in this action.

On April 04, 2011, an Order Awarding Attorney Fees and Expenses was issued by the Court, along with an Order Awarding Attorney Fees And Expenses. Lastly, the Court issued an Order Of Dismissal and for Entry Of Judgment dismissing this case with prejudice.

INDUSTRY CLASSIFICATION:
SIC Code: 3845
Sector: Healthcare
Industry: Medical Equipment & Supplies

COMPANY/ISSUER NAME:	The Spectranetics Corporation
COMPANY/ISSUER TICKER:	SPNC
COMPANY WEBSITE:	http://www.spectranetics.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Max Hancook, et al. v. The Spectranetics Corporation, et al.

COURT: D. Colorado	DOCKET NUMBER: 08-CV-02048
JUDGE NAME: Hon. Richard P. Matsch
DATE FILED: 09/23/2008	SOURCE:
CLASS PERIOD START: 04/19/2007	CLASS PERIOD END: 09/04/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) 310.201.915, (fax) 310. 201-916, info@glancylaw.com The Shuman Law Firm 885 Arapahoe Avenue, Denver, CO, 80302 (voice) 303.861.3003, (fax) 303.861.3003, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Violations Of The Federal Securities Laws And Jury Demand
Type: Complaint		Date on the document: 9/23/2008
US District Court Civil Docket
Type: Docket		Date on the document: 9/23/2008
Order Granting Motions To Consolidate
Type: Order of Consolidation		Date on the document: 01/16/2009

REFERENCE COMPLAINT

Spectranetics Investor Group, et al. v. The Spectranetics Corporation, et al.

COURT: D. Colorado	DOCKET NUMBER: 08-CV-02048
JUDGE NAME: Hon. Robert E. Blackburn
DATE FILED: 08/04/2009	SOURCE:
CLASS PERIOD START: 03/16/2007	CLASS PERIOD END: 09/04/2008
TYPE OF COMPLAINT: First Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brower Piven (New York) 488 Madison Avenue. Eighth Floor, New York, NY, 10022 (voice) 212.501.9000, (fax) 212.501.0300, info@browerpiven.com Labaton Sucharow LLP 140 Broadway, New York, NY, 10005 (voice) 212.907.0700, (fax) 212.818.0477, info@labaton.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Order Re: Motions To Appoint Lead Plaintiff And Counsel
Type: Order Appointing LP/LC		Date on the document: 06/15/2009
Lead Plaintiff's Consolidated Class Action Complaint
Type: Complaint		Date on the document: 08/04/2009
Order
Type: Order		Date on the document: 09/18/2009
Lead Plaintiff's Supplemental Consolidated Class Action Complaint
Type: Complaint		Date on the document: 02/10/2010
Order
Type: Order		Date on the document: 02/10/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 07/02/2010
Notice Of Pendency Of Class Action And Proposed Settlement
Type: Notice		Date on the document: 09/07/2010
Proof Of Claim And Release
Type: Other		Date on the document: 09/07/2010
Stipulation Of Settlement
Type: Settlement		Date on the document: 09/07/2010
Order Preliminarily Approving Settlement And Approving The Form And Manner Of Notice
Type: Order		Date on the document: 09/13/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/08/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/08/2010
Lead Plaintiffs' Supplemental Memorandum In Support Of Unopposed Motion For Final Approval Of The Proposed Settlement, Plan Of Allocation, And Final Certification Of Class
Type: Memorandum		Date on the document: 12/21/2010
Order Awarding Attorney Fees And Expenses
Type: Order Approving AF&E		Date on the document: 04/04/2011
Order Of Dismissal And For Entry Of Judgment
Type: Order		Date on the document: 04/04/2011
Judgment
Type: Other		Date on the document: 04/05/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/05/2011

OTHER DOCUMENTS
Plaintiff's Class Action Complaint For Violation Of The Federal Securities Laws
Case Name and/or Number: Max Hancook, et al. v. The Spectranetics Corporation, et al.
Type: Complaint		Date on the document: 9/24/2008
Class-Action Complaint For Violations Of The Federal Securities Laws And Jury Demand
Case Name and/or Number: Max Hancook, et al. v. The Spectranetics Corporation, et al.
Type: Complaint		Date on the document: 9/26/2008
Order
Case Name and/or Number: In re: Ted Karkus
Type: Order		Date on the document: 01/27/2010

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