According to a press release dated January 15, 2010, the complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants: i) violated federal regulations regarding the manufacture of medical devices; ii) subjected the Company to unnecessary risks of sales disruptions, lower revenues and product liabilities due to product recalls; and iii) hid hundreds of millions of dollars of additional compliance costs both prior to and during the Class Period, allowing defendants to falsely report and/or project 20%+ earnings growth for Stryker during 2006, 2007 and 2008.
On November 13, 2008, during an investor conference hosted by Credit Suisse, Stryker revealed that it was still losing revenues and customers as a result of a January 2008 hip product recall. Following these statements Stryker common declined 23% closing at $36.11 per share on November 20, 2008.
On May 21, 2010, a Motion To Transfer Venue to the United States District Court for the Western District of Michigan at Kalamazoo was granted.
On January 3, 2011, Judge Gordon J. Quist granted the motion to appoint the P Genesee County Employees' Retirement System, Alaska Electrical Pension Fund, State-Boston Retirement System as lead plaintiffs. On March 25, 2011, the plaintiffs filed an Amended Complaint. The defendants responded by filing a motion to dismiss the Amended Complaint on April 19, 2011, and their motion was denied on July 6, 2011.
On August 19, 2011, the defendants filed a motion to dismiss.
On March 30, 2012, Judge Gordon J. Quist granted defendants' motion to dismiss. Plaintiffs' Amended Complaint was dismissed with prejudice.