Shareholder Lawsuit Filed Against Guidant Corporation, Berman DeValerio Pease Tabacco Burt & Pucillo Says

INDIANAPOLIS, Nov. 18 /PRNewswire/ -- An investor sued Guidant Corporation in federal court today, accusing the medical device maker of issuing materially false and misleading statements to the public, Berman DeValerio Pease Tabacco Burt & Pucillo announced.

Berman DeValerio (http://www.bermanesq.com/) filed the class action in the U.S. District Court for the Southern District of Indiana. The complaint seeks damages for violations of federal securities laws on behalf of all investors who purchased Guidant common stock between December 15, 2004 and November 3, 2005, inclusive.

To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Guidant-Cplt.pdf.

The lawsuit claims that Guidant and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Sections 240.10b-5 promulgated thereunder.

According to the complaint, on December 15, 2004, Johnson & Johnson agreed to acquire Guidant for an astounding $25.4 billion, citing Guidant's strong ICD business as a key component of the acquisition. All the while, defendants knowingly or recklessly withheld information from investors concerning the serious and life-threatening wiring and battery defects that many of its ICDs were suffering. Starting in June 2005, with two recalls impacting nine separate ICD product lines and culminating in November with news of a government investigation related to Guidant's disclosures, as well as revelations in a complaint filed by New York's Attorney General that defendants knew of the defects for years, Guidant slowly leaked the truth about its defective ICDs to the public. When the market did finally learn the full extent of defendants' fraud on November 3, 2005, the price of Guidant's common stock had fallen to $57.57, down more than 23% from its Class Period high of $75.05 per share.

If you purchased Guidant common stock between December 15, 2004 and November 3, 2005, inclusive, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.

Leslie R. Stern, Esq. Bryan A. Wood, Esq. One Liberty Square Boston, MA (800) 516-9926 law@bermanesq.com

If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than January 3, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=561. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.

Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud.

Contact: Bryan A. Wood, Esq., (800) 516-9926