Stay current on changes and developments in corporate law with a wide variety of resources and tools.
A Medtronic Inc. investor lost a bid to revive her lawsuit alleging that directors and officers caused the medical device company to market its bone tissue development product for an off-label use ( Kokocinski v. Collins , 2017 BL 62727, 8th Cir., No. 15-3519, 3/1/17 ).
The U.S. Court of Appeals for the Eighth Circuit upheld a lower court’s dismissal of the action on the grounds that a special litigation committee found no support for the shareholder’s allegations.
The company in 2012 formed an independent committee to investigate several similar shareholder claims that directors and officers breached their legal duties and made misleading statements in connection with the company’s Infuse product.
Infuse, a key component of Medtronic’s multi-billion dollar spinal segment, is a device that stimulates bone growth. In 2002, the Food and Drug Administration approved Infuse for use in spinal surgeries. The court recounted that the company from 2006 to 2008 was subject to controversy over the alleged promotion of the product for uses that hadn’t been approved by the FDA.
In the underlying lawsuit, shareholder Charlotte Kokocinski appealed a U.S. District Court for the District of Minnesota decision deferring to the committee’s report.
Applying Minnesota law, the appeals court found that the committee’s investigation was “extensive in both its length and scope.”
“The SLC reviewed over 2.6 million documents and interviewed 60 individuals over an 18-month period. It relied on the advice of independent experts and counsel,” Judge Clarence Arlen Beam wrote. “Kokocinski presents no evidence that Medtronic or the individual defendants were involved in the investigation, and she has not raised any complaint about the quality of the information received.”
To contact the reporter on this story: Michael Greene in Washington at mGreene@bna.com
To contact the editor responsible for this story: Yin Wilczek at firstname.lastname@example.org
The decision is available at http://www.bloomberglaw.com/public/document/Kokocinski_v_Collins_No_153519_2017_BL_62727_8th_Cir_Mar_01_2017
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)