On October 17, 2012, St. Jude hosted a conference call to discuss its financial results for the third quarter of 2012. During the call, the Company informed investors of potential advisory action by the U.S. Food and Drug Administration (the “FDA”) resulting from the FDA’s inspection of the Company’s facility in Sylmar, California. On this news, St. Jude’s stock fell $2.09 per share, or 4.87 percent, to close at $40.85 per share.
On October 24, 2012, St. Jude filed a Form 8-K with the U.S. Securities and Exchange Commission regarding the FDA’s inspection of the Sylmar facility and included a heavily redacted version of the FDA’s inspection report. In describing the inspection results, St. Jude claimed that “none of the observations identified a specific issue regarding the clinical or field performance of any particular device.” Following this news, St. Jude’s stock price fell $1.44 per share, or 3.63 percent, to close at $38.27 per share on October 25, 2012.
On November 20, 2012, the FDA released its own version of the Sylmar facility inspection report. The FDA’s report revealed numerous concerns relating primarily to the design, production, and quality control of the manufacturing process of Durata leads. On this news, St. Jude’s stock price fell $4.34 per share, or 12.15 percent, to close at $31.37 per share on November 21, 2012, on exceptionally heavy trading volume.
About Lieff CabraserLieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last ten consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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