May 22, 2012

Faegre Baker Daniels Achieves Dismissal of Suit Against Zimmer in 7th Circuit, Law360 Notes

On May 21, 2012, the Seventh Circuit Court refused to reinstate a securities suit aimed at orthopedic implant maker Zimmer Holdings Inc. and its allegedly faulty Durom Cup hip implant, according to the Law360 article, "7th Circ. Rejects Securities Suit Over Zimmer Hip Implant." The appeals court confirmed a ruling by the district court that even a proposed amended version of the suit failed to meet the heightened pleading standards for fraud.

In August 2008, a union pension fund brought a putative class action against Zimmer, alleging that its top executives defrauded investors by making misleading statements about the product that caused stocks to drop. The Seventh Circuit ruled that the suit's claims failed to demonstrate that the omitted information was materially relevant to shareholders and lacked particularity in showing how the alleged transgressions affected stock price.

Law360 noted that Paul Wolfla and Matthew Albaugh of Faegre Baker Daniels represented Zimmer in the matters.

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