GDT Guidant Corp

DALLAS, Dec. 2 /PRNewswire/ -- The Provost & Umphrey Law Firm, LLP filed a securities fraud class action against Guidant Corporation (NYSE:GDT) in the United States District Court for the Southern District of Indiana on November 29, 2005. By issuing false statements and by failing to disclose material non-public information, Guidant and its officers and directors violated the anti-fraud provisions of the Securities Exchange Act of 1934. These violations caused the Company's stock price to be artificially inflated from December 15, 2004 through November 4, 2005. Indeed, when true and complete disclosures were revealed regarding the Company's pace-maker product lines, Guidant's stock plunged, and the announced merger with Johnson & Johnson nearly collapsed. On December 15, 2004, Guidant announced that it had been sold to Johnson & Johnson for approximately $25 billion. Guidant's defibrillator/pace-maker product lines were an integral part of this deal with Johnson & Johnson. Mindful of this fact, the Defendants intentionally concealed manufacturing defects of various defibrillator/pace-maker product lines from both Johnson & Johnson as well as investors. On June 17, 2005, the FDA recalled Guidant's defibrillators. In doing so, the government warned the public not only of the nature of the malfunctioning devices, but also that these devices could lead to a serious, life-threatening event for a patient. On this news, Johnson & Johnson pulled out of its December 14, 2004 purchase agreement, and ultimately purchased Guidant for $21.5 billion, more than $4 billion less than the original offer price. If you would like additional information about the subject matter of this complaint or you would like to serve as lead plaintiff, please contact Willie Briscoe at 214-744-3000. Provost Umphrey has offices in Arkansas, Pennsylvania, Tennessee, and Texas. The firm specializes in complex litigation, including securities fraud, and represents individuals, corporations, foundations, and pension funds nationwide. Since 1969, Provost Umphrey has recovered billions of dollars on behalf of consumers. For more information on Provost Umphrey, go to http://www.provostumphrey.com/ . DATASOURCE: Provost & Umphrey Law Firm, LLP CONTACT: Willie Briscoe of Provost & Umphrey Law Firm, LLP, +1-214-744-3000 Web site: http://www.provostumphrey.com/

Copyright