FoxHollow Technologies, Inc. ("FoxHollow" or the Company) is a medical devices company that primarily engages in the manufacture and sale of a medical device, called the SilverHawk, used to treat artery disease.
The original Complaint alleges that FoxHollow, and certain of its officers and directors, violated Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements that misrepresented or concealed adverse facts, including that FoxHollow's Chairman had directed management to acquire another private company, called Lumend, for his own benefit and ultimately caused the Company to terminate certain senior management based on their refusal to go along with the acquisition. When FoxHollow announced that members of its senior management, including the CEO, COO and VP of Sales were being replaced, in December 2005 and January 2006, the price of FoxHollow's stock dropped nearly 50% on extremely heavy volume.
On October 26, 2006, the Court issued the Order signed by Judge Hamilton consolidating the related cases and appointing lead plaintiff and lead Counsel. On December 15, 2006, a Consolidated Complaint was filed, and the Defendants responded by filing a motion to dismiss the Consolidated Complaint. On September 11, 2007, the Court entered the Order granting the Defendants’ motion to dismiss the Consolidated Complaint without prejudice. The Plaintiffs were granted leave to amend and file a First Amended Complaint on or before October 5, 2007. On October 19, 2007, a First Amended Complaint was filed and the Defendants responded by filing a motion to dismiss the First Amended Complaint on November 19, 2007.
On May 27, 2008, U.S. District Judge Phyllis J. Hamilton granted the Defendants’ motion to dismiss the First Amended Complaint. Judgment was further entered that day and the action was dismissed. On June 20, 2008, the Plaintiff filed a Notice of Appeal from the Order and Judgment dismissing the action. The appeal is currently pending in the Ninth Circuit Court of Appeals.
