The Indianapolis Star has just posted a story on its website headlined "Judge tosses lawsuit against Guidant: Shareholders of the Indianapolis-based medical device firm had sued over cover-up of problems with an abdominal aortic graft." Some quotes:
A federal judge in Indianapolis has dismissed a securities fraud lawsuit against Guidant Corp. arising from its cover-up of problems with an abdominal aortic graft.[More] Here is Judge Barker's 11/8/04 48-page entry granting defendant's motion to dismiss: In re GUIDANT CORPORATION SECURITIES LITIGATION. Posted by Marcia Oddi at November 16, 2004 12:08 PMJudge Sarah Evans Barker ruled that the complaint "fails to state an actionable claim" and that the lead plaintiff may lack legal standing to file the lawsuit.
Barker's ruling in U.S. District Court for Southern Indiana last week comes 17 months after the original complaint was filed against Guidant. That led to the proposed class-action lawsuit by shareholders of Guidant, an Indianapolis medical device firm.
The judge said the lawsuit fails because it:
* Fails to state sufficient facts indicating Guidant's public statements about the graft product were misleading.
* Fails to state sufficient facts to show Guidant acted with intent to deceive shareholders.
* Contains largely "statements of puffery" that can't legally be acted on.