SECURITIES CLASS ACTIONS Clause Samples

SECURITIES CLASS ACTIONS. Several securities class action lawsuits were filed against Company and certain of its executives in 2008. In 2009, these cases were consolidated into one case styled as In re Spectranetics Corporation Securities Litigation, Case No. 08-2049 in the United States District Court for the District of Colorado, and a group of investors identified as the Spectranetics Investor Group was appointed lead plaintiff. On August 4, 2009, the Spectranetics Investor Group filed its consolidated class action complaint, naming Company, J▇▇▇ ▇▇▇▇▇▇▇, Guy Childs, J▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, E▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇, and C▇▇▇▇ ▇▇▇▇▇▇ as defendants. The consolidated complaint asserts claims under the Securities Exchange Act of 1934 alleging that the defendants either failed to disclose, made false and misleading statements, and/or participated in a common plan, scheme and unlawful course of conduct involving, among other things, improper marketing, promoting and testing of its products and the products of third parties for unapproved uses; payments to medical personnel in connection with these uses; withholding data from the FDA; the lack of effective regulatory compliance controls and adequate internal and financial controls; and materially inflating Company's financial results as a result of this conduct. Lead plaintiff seeks class certification, compensatory damages, legal fees and such other relief as the court may deem proper. The defendants moved to dismiss the consolidated class action complaint on September 18, 2009. Various motions were subsequently filed opposing and supporting the dismissal and the Court has not yet ruled on these motions. Stockholder Derivative Action Several stockholder derivative actions were filed in 2008 and 2009 against E▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇, D▇▇▇▇ ▇▇▇▇▇▇▇▇▇, Guy Childs, R. J▇▇▇ ▇▇▇▇▇▇▇▇, M▇▇▇▇▇ ▇▇▇▇, J▇▇▇▇▇ ▇▇▇▇▇▇, J▇▇▇ ▇▇▇▇▇▇▇ and C▇▇▇▇ ▇▇▇▇▇▇ (the “Individual Defendants”), and Company as a nominal defendant in the United States District Court for the District of Colorado and the District Court of El Paso County, Colorado. These actions were ultimately consolidated into one action styled as K▇▇▇ v. ▇▇▇▇▇▇▇▇▇▇▇▇, Case No. 08-2102 in the United States District Court for the District of Colorado. The lawsuits allege that the Individual Defendants breached their fiduciary duties, grossly mismanaged Company, wasted corporate assets, abused their control and were unjustly enriched, as indicated by, among other things, the FDA and ICE investigation; Company's stock p...