Judge Orders Medtronic Infuse Witness to Testify in Shareholder Lawsuit
Date Published: Friday, February 3rd, 2012
A Minnesota federal judge on has upheld a motion requiring a confidential witness to testify in a shareholder class action that claims Medtronic Inc.’s stock price dropped because it pushed off-label uses for its Infuse spinal graft.
U.S. District Judge Paul A. Magnuson’s ruling affirmed a magistrate judge’s order for the witness, a former Medtronic employee, to testify and turn over a document that he tried to withhold by citing Fifth Amendment protection.
Magnuson ruled that the former employee’s decision to sign a declaration in support of one of Medtronic’s earlier court filings disqualified him from such protection.
According to Law360.com, investors first brought suit against Medtronic in 2008, saying it had intentionally promoted its Infuse spinal graft for off-label uses and failed to disclose that the system’s sales revenues were largely dependent on unapproved uses. The company’s stock dropped 13 percent after it revealed that the U.S. Department of Justice was investigating the alleged promotion of off-label uses for Infuse, according to the lawsuit.
As the plaintiffs moved last year to certify the class in the suit, the witness backed the medical device maker in a declaration and opposed the class certification motion, according to the ruling.
According to Law360.com, the class then filed a subpoena asking the witness to testify and turn over documents. Though the witness complied in part, he did not testify and withheld eight documents, claiming they were privileged and could be self-incriminatory.
This entry was posted on Friday, February 3rd, 2012 at 3:35 pm and is filed under Uncategorized.
Judge Orders Medtronic Infuse Witness to Testify in Shareholder Lawsuit
Date Published: Friday, February 3rd, 2012
A Minnesota federal judge on has upheld a motion requiring a confidential witness to testify in a shareholder class action that claims Medtronic Inc.’s stock price dropped because it pushed off-label uses for its Infuse spinal graft.
U.S. District Judge Paul A. Magnuson’s ruling affirmed a magistrate judge’s order for the witness, a former Medtronic employee, to testify and turn over a document that he tried to withhold by citing Fifth Amendment protection.
Magnuson ruled that the former employee’s decision to sign a declaration in support of one of Medtronic’s earlier court filings disqualified him from such protection.
According to Law360.com, investors first brought suit against Medtronic in 2008, saying it had intentionally promoted its Infuse spinal graft for off-label uses and failed to disclose that the system’s sales revenues were largely dependent on unapproved uses. The company’s stock dropped 13 percent after it revealed that the U.S. Department of Justice was investigating the alleged promotion of off-label uses for Infuse, according to the lawsuit.
As the plaintiffs moved last year to certify the class in the suit, the witness backed the medical device maker in a declaration and opposed the class certification motion, according to the ruling.
According to Law360.com, the class then filed a subpoena asking the witness to testify and turn over documents. Though the witness complied in part, he did not testify and withheld eight documents, claiming they were privileged and could be self-incriminatory.
Responses are currently closed, but you can trackback from your own site.
