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NEW YORK, Sept. 21, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Medtronic Plc (“”Medtronic” or the “Company”) (NYSE: MDT). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Medtronic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On December 15, 2021, Medtronic disclosed receipt of a warning letter from the U.S. Food and Drug Administration (“FDA”) regarding its Northridge, California facility (the “Warning Letter”). The Warning Letter followed an FDA inspection relating to the Company’s MiniMed 600 series recall and focused on “the inadequacy of specific medical device quality system requirements . . . in the areas of risk assessment, corrective and preventive action, complaint handling, device recalls, and reporting of adverse events.” The Warning Letter further explained that Medtronic had known about the MiniMed quality issues for several years before the Company finally initiated the recall, and that it failed to appropriately respond to complaints and report safety issues. As a result of the Warning Letter—including the resulting uncertainty about FDA approval of the MiniMed 780G and other products in Medtronic’s diabetes operating unit (the “Diabetes Group”)—Medtronic lowered its guidance for its Diabetes Group, now projecting that Diabetes Group product revenues would decline in the mid-single digits range for fiscal year 2022.
On this news, Medtronic’s stock price fell $6.75 per share, or approximately 6%, to close at $104.94 per share on December 15, 2021.
Then, on May 26, 2022, Medtronic reported its financial results for the fourth quarter and full year of fiscal year 2022 and provided guidance for fiscal year 2023. Notably, the Company disclosed that due to its need to improve its quality control system and its expectation that the MiniMed 780G model 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, Medtronic’s stock price fell $6.10 per share, or nearly 6%, to close at $99.44 per share on May 26, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980