On Nov. 20, 2012, the FDA released its own version of the Form 483 it had issued to the St. Jude facility in question. The FDA’s version revealed that a majority of the observed problems directly affected the Durata lead. After this information was released, St. Jude stock, which has 301 million shares outstanding, fell by $4.34, a 12 percent drop.
During the class period, St. Jude CEO Daniel Starks, privy to non-public information concerning the company and the FDA report on its Durata product, sold 200,000 shares of company stock.
“When you compare the information St. Jude provided to its investors with the information the FDA issued, it’s clear that St. Jude misled its shareholders in order to preserve its stock value,” said Mr. Kathrein, who is leading the firm’s investigation. “Leaving out vital information in an earnings announcement is dishonest enough, but profiting from insider selling while doing it is shameful.”
The firm also reminds whistleblowers with inside information that rewards may be available to individuals who report information leading to a successful enforcement action by the Securities and Exchange Commission. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.More information about this investigation is available at www.hb-securities.com/STJ. About Hagens Berman Hagens Berman Sobol Shapiro, LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm’s securities law blog is at http://www.meaningfuldisclosure.com.