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Spectranetics Announces Settlement of Securities Class Action Litigation

^{Published on 2010-06-22 04:12:24 - Market Wire}
 

COLORADO SPRINGS, Colo.--([ BUSINESS WIRE ])--The Spectranetics Corporation (Nasdaq: SPNC) today announced that it has agreed in principle to settle both the securities class action litigation pending against the company and certain of its current and former officers and directors and the stockholder derivative case naming the company as a nominal defendant and certain of its current and former officers and directors as defendants. The class action was brought on behalf of persons and entities who bought or acquired shares of Spectraneticsa™ common stock between March 16, 2007 and September 4, 2008.

"Ia™m pleased that, upon approval by the Court, we can put the securities class action lawsuit and stockholder derivative case behind us and avoid the distraction and cost associated with protracted litigation"

Under the proposed class action settlement, the claims against Spectranetics and its officers and directors will be dismissed with prejudice and released in exchange for a cash payment of $8.5 million to be funded by Spectraneticsa™ Insurers. The proposed settlement remains subject to the satisfaction of various conditions, including negotiation and execution of a final stipulation of settlement, and approval by the U.S. District Court for the District of Colorado following notice to members of the class. Terms for distribution of the settlement fund to class members, less fees awarded by the court to class counsel, and other terms of the settlement will be disclosed in a notice to be sent to class members after preliminary court approval.

Under the terms of the proposed derivative settlement, plaintiffs (on their own behalf and derivatively on behalf of Spectranetics) will dismiss the stockholder derivative case with prejudice and release their claims in exchange for formalizing certain corporate governance procedures and payment of attorneys fees of $350,000. As with the class action settlement, the proposed settlement will be funded by Spectraneticsa™ Insurers and remains subject to the satisfaction of various conditions, including negotiation and execution of a final stipulation of settlement and approval by the U.S. District Court for the District of Colorado.

The Company and the individual defendants have steadfastly maintained that the claims raised in the class action litigation and stockholder derivative case were without merit, and have vigorously contested those claims. As part of the settlements, the Company and the individual defendants continue to deny any liability or wrongdoing under the securities laws.

"Ia™m pleased that, upon approval by the Court, we can put the securities class action lawsuit and stockholder derivative case behind us and avoid the distraction and cost associated with protracted litigation," said Emile J. Geisenheimer, Spectraneticsa™ Chairman of the Board of Directors, President and Chief Executive Officer.

The Company also recently became aware that three Spectranetics stockholders filed an individual lawsuit on May 28, 2010 in the United States District Court for the District of Colorado asserting various federal and state claims arising out of the same facts alleged in the securities class action. Two of the three stockholders who brought this case had previously moved unsuccessfully to be appointed as lead plaintiff in the securities class action where they claimed a loss of $1.27 million. Spectranetics intends to defend this lawsuit vigorously.

About Spectranetics

Spectranetics develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. The Companya™s products are sold in 40 countries throughout the world and are used to treat arterial blockages in the heart and legs as well as the removal of problematic pacemaker and defibrillator leads.

The Companya™s Vascular Intervention (VI) products include a range of peripheral and cardiac laser catheters for ablation of occluded arteries above and below the knee and within coronary arteries. The Company also markets aspiration and thrombectomy catheters for the removal of thrombus and support catheters to facilitate crossing of coronary and peripheral arterial blockages.

The Lead Management (LM) product line includes excimer laser sheaths and cardiac lead management accessories for the removal of problematic pacemaker and defibrillator cardiac leads.

For more information, visit [ www.spectranetics.com ].

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties may include adverse impact to our business of the recently enacted healthcare reform bill and related legislation, continued or worsening adverse conditions in the general domestic and global economic markets and continued volatility and disruption of the credit markets, which, among other things, affects the ability of hospitals and other health care systems to obtain credit and may impede our access to capital and has rendered our investments in auction rate securities illiquid, market acceptance of excimer laser atherectomy technology, increasing price and product competition, increased pressure on expense levels resulting from expanded sales, marketing, product development and clinical activities, uncertain success of the Companya™s strategic direction, dependence on new product development, intellectual property claims of third parties, insufficient insurance coverage for legal costs being incurred by former employees as part of the ongoing federal investigation, availability of inventory from suppliers, adverse outcome of FDA inspections, the receipt of FDA approval to market new products or applications and the timeliness of any approvals, market acceptance of new products or applications, product defects, ability to manufacture sufficient volumes to fulfill customer demand, availability of vendor-sourced components at reasonable prices, unexpected delays or costs associated with the Companya™s relocation and consolidation of its manufacturing operations, and price volatility due to the initiation or cessation of coverage, or changes in ratings, by securities analysts. For a further list and description of such risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from any anticipated results, performance or achievements, please see the Companya™s previously filed SEC reports. Spectranetics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether as a result of new information, future events or otherwise.