The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Minnesota on behalf of those who acquired Medtronic Plc. (“Medtronic”) (NYSE: MDT) securities between June 8, 2019 through May 25, 2022, inclusive (the “Class Period”). Investors have until November 7, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Medtronic offers surgical devices, medical devices, medical instruments, apparatus, respiratory monitoring systems, medical supplies, and other equipment.
On May 26, 2022, the Company reported its financial results for the fourth quarter and full fiscal year 2022, and provided guidance for fiscal year 2023, disclosing that as a result of the company’s need to improve its quality control system and its expectation that the MiniMed 780G model - which Defendants had repeatedly identified as crucial to future growth - would not be approved in 2023, the company expected revenues from its Diabetes Group to decline between 6% and 7% in fiscal year 2023. On this news, the price of Medtronic shares declined by $6.10 per share, or approximately 57.8%, from $105.54 per share to close at $99.44 on May 26, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Medtronic's product quality control systems were inadequate; (2) Medtronic had failed to comply with numerous regulations regarding risk assessment, corrective and preventive action, complaint handling, device recalls, and reporting of adverse events; (3) these failures increased the risk of regulatory investigation and action; (4) as a result of the company's misconduct, the U.S. Food and Drug Administration ("FDA") would delay the approval of additional Medtronic MiniMed devices, including the MiniMed 780G; (5) these delays in product approvals, as well as the Company's need to improve its quality control systems, would negatively affect Medtronic's financial performance and cause it to fall further behind its competitors; and (6) as a result of the foregoing, defendants' statements about the company's business, operations, and prospects lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.