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After DoJ Joins Whistleblower Suit Against St. Jude, Shareholders Sue Executives

September 29, 2010

Last week — less than two months after the government moved to intervene in a whistleblower suit against pacemaker manufacturer St. Jude Medical — investors in the company filed a derivative action against several officers and directors.  The goal of the lawsuit stated in the Complaint is:

“to prevent corporate insiders from shifting all responsibility for the Company’s misconduct onto the backs of the innocent shareholders, while they themselves walk away while paying nothing, and even voting themselves increased salaries and benefits.”

As previously reported by FraudBlawg, the underlying claims in the whistleblower lawsuit under the federal False Claims Act allege that St. Jude “used post-market studies and device registries as mechanisms to pay physicians illegal kickbacks for using its products.”

To report healthcare fraud, contact Frohsin & Barger.

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