Case Page

 

Case Status:    SETTLED
On or around 07/13/2012 (Date of order of distribution of settlement)

Filing Date: September 23, 2008

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.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SPNC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Colorado
DOCKET #: 08-CV-02048
JUDGE: Hon. Richard P. Matsch
DATE FILED: 09/23/2008
CLASS PERIOD START: 04/19/2007
CLASS PERIOD END: 09/04/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. The Shuman Law Firm (former Denver)
    885 Arapahoe Avenue, The Shuman Law Firm (former Denver), CO 80302
    303.861.3003 303.861.3003 ·
No Document Title Filing Date
COURT: D. Colorado
DOCKET #: 08-CV-02048
JUDGE: Hon. Richard P. Matsch
DATE FILED: 08/04/2009
CLASS PERIOD START: 03/16/2007
CLASS PERIOD END: 09/04/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brower Piven (Baltimore)
    The World Trade Center-Baltimore. 401 East Pratt Street, Suite 2525, Brower Piven (Baltimore), MD
    410.332.0030 410.685.1300 · info@browerpiven.com
  2. Chimicles & Tikellis LLP (Haverford)
    361 West Lancaster Avenue, Chimicles & Tikellis LLP (Haverford), PA 19041
    888.805.7848 610.649.3633 · mail@chimicles.com
  3. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  4. The Miller Law Firm PC
    950 West University Drive, Suite 300, The Miller Law Firm PC, MI 48307
    248.841.2200 248.652.2852 ·
  5. The Shuman Law Firm (former Denver)
    885 Arapahoe Avenue, The Shuman Law Firm (former Denver), CO 80302
    303.861.3003 303.861.3003 ·
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No Document Title Filing Date
No Document Title Filing Date