St. Jude Medical Files Lawsuit Against Muddy Waters And MedSec - Quick Facts

(RTTNews) - Medical device maker St. Jude Medical, Inc. (STJ) said it has filed a lawsuit against Muddy Waters Consulting LLC, Muddy Waters Capital LLC, MedSec Holdings, Ltd., MedSec LLC, and three individual defendants who are principals in these firms, for false statements, false advertising, conspiracy and the related manipulation of the public markets in connection with St. Jude Medical's implantable cardiac management devices.

The lawsuit filed by St. Jude Medical today alleges that Muddy Waters, MedSec and the other defendants intentionally disseminated false and misleading information in order to lower the value of St. Jude Medical's stock and to wrongfully profit from a drop in share value through a short-selling scheme.

With this action, St. Jude Medical seeks to hold these firms and individuals accountable for their false and misleading tactics, to set the record straight about the security of its devices, and to help cardiac patients and their doctors make informed medical decisions about products that enhance and save lives every day.

"We felt this lawsuit was the best course of action to make sure those looking to profit by trying to frighten patients and caregivers, and by circumventing appropriate and established channels for raising cybersecurity concerns, do not use this avenue to do so again," said Michael Rousseau, president and chief executive officer at St. Jude Medical said.

The lawsuit was filed in the United States District Court for the District of Minnesota. This case follows St. Jude Medical's recent statements that refuted claims by Muddy Waters and MedSec regarding the safety and security of its pacemakers and defibrillators.