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Minnesota-based St. Jude Medical, Inc. (NYSE: STJ)
engages in the development, manufacture, and distribution
of cardiovascular medical devices for the global cardiac rhythm
management, cardiac surgery, cardiology, and atrial fibrillation
therapy areas and implantable neuromodulation devices.
In the first quarter of this year, the Company touted its sales
success and prospects of a major St. Jude product, its
implantable cardioverter defibrillator systems (``ICD'').
Specifically, on January 25, 2006, St. Jude reported that
fourth quarter implantable cardioverter defibrillator (ICD)
product sales were $280 million, a 62% increase over the
comparable quarter of 2004 and that ICD product sales
for the full-year 2005 were $1.007 billion, representing
a 72% increase over 2004.
Sounds like good news for shareholders and management.
Definitely, it was good news for those shareholders who
sold their STJ stock after the January 25 announcement.
It wasn’t good news, however for those who bought
St. Jude Medical after hearing about the Company’s fourth
quarter results.
Soon the true state of the Company would be revealed.
On April 4, 2006, St. Jude shocked the market by
announcing that its financial and operating results were
well below analysts' expectations and the declining sales
of ICDs. The market reacted strongly to this announcement
and shares of St. Jude dropped over $5 per share.
Obviously most purchasers in the first quarter of 2006 took
a significant hit.
But don’t worry; corporate insiders didn’t suffer by artificially
inflating the price of St. Jude’s stock. For example, CEO
Daniel J. Starks knew when to sell – he sold an unusual
number of shares in the open market in the early months
of 2006. Moreover, he received a substantial boost in his
compensation for 2005's performance, including a grant of
216,000 restricted shares worth (at the time) approximately
$10 million.
Investors who purchased stock between January 25, 2006
and April 4, 2006 are affected.
Newpark Resources Restates
On April 17, 2006, before the opening of trading, Newpark
Resources (NYSE: NR), a Louisiana based provider of services
to oil drillers, disclosed that: 1) it is investigating potential
irregularities in accounting for invoices at the company's
environmental construction subsidiary; and 2) the company
suspended Chief Financial Officer Matthew W. Hardey and
two executives at Newpark subsidiaries. The Company disclosed
that the irregularities involve the processing and payment
of invoices by a Newpark subsidiary.
Newpark Resources stock dropped over 17% on this news.
Investors who purchased between January 1, 2005 and
April 14, 2006 are affected.
If you are an affected St. Jude Medical or Newpark Resources
investor or an affected investor in any of the companies
listed below you may wish to contact us at
info@securitiessleuth.com or 877.511.4717 to
discuss your options.
Four other recent cases of particular interest to many of our
readers may be:
GMH Communities Trust (NYSE: GCT) On March 13, 2006,
the Company’s shares tumbled 25% after it disclosed, among
other things, that it is revising downward its earnings guidance
for 2005 and withdrawing its previously issued earnings
guidance for the year ending December 31, 2006 and that the
delay relates to an Audit Committee investigation following its
receipt of a letter from the Company's CFO alleging, among
other things, a "tone at the top" problem within Company
management. Investors who purchased stock between
May 5, 2005 and March 10, 2006, are affected.
Zale's (NYSE: ZLC) On April 10, 2006, Zale Corporation
announced that the Securities and Exchange Commission
initiated a non-public investigation relating to various
accounting and other matters related to the Company,
including accounting for extended service agreements,
leases and accrued payroll. Zale’s stock dropped
significantly on this news. Investors who purchased between
November 18, 2003 and April 7, 2006, may be affected.
Estee Lauder Companies Inc. (NYSE: EL) It has been alleged
that Estee Lauder insiders used both channel stuffing and
materially false and misleading statements to prop up
reported revenues and earnings long enough to sell millions
of their Estee Lauder shares are artificially inflated prices.
Investors who purchased Estee Lauder between
April 28, 2005 and October 25, 2005, are affected.
Sea Containers, Ltd. (NYSE: SCR-A) On March 24, 2006 the
Company revealed that it was restating its financial
statements to reflect a massive, $500 million write-down
of the value of its ferry and container assets, and that it
was in default of its loan covenants. The market reaction
to this news was harsh as the Company’s stock dropped
nearly 40%. Investors who purchased Sea Containers, Ltd.
stock between March 15, 2004 and March 24, 2006, are affected.
At this time there are an astonishing number of situations involving corporate irregularities, including the following:
Richardson Electronics (NASDAQ: RELL)
CSK Auto Corporation (CAO)
Nature's Sunshine Product, Inc. (NATRE)
America Service Group Inc. (ASGRE)
Global Power Equipment (GEG)
PHH Corporation (PHH)
Global Power Equipment (GEG)
Bausch & Lomb (BOL)
Allion Healthcare, Inc. (ALLI)
Terayon (TERNE)
Northfield Laboratories, Inc. (NFLD)
PainCare Holdings, Inc. (PRZ)
Merge Tech Inc. (MRGE)
For details regarding any of these cases, go to www.securitiessleuth.com.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
proportionate share of recovery.
Two cases that have recently settled that may be of
particular interest are:
Salton, Inc. (SFP)
Class Period: November 11, 2002 to May 11, 2004
Claims Deadline: July 17, 2006
Claims Administrator: Gilardi
Bristol-Myers Squibb (BMY)
Class Period: October 19, 1999 to March 20, 2002
Claims Deadline: June 30, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including the
cases listed below can be found at www.securitiessleuth.com:
Royal Ahold N.V. (AHO)
Textron, Inc. (TXT)
Bristol-Myers Squibb (BMY)
Eaton Vance Corp. (EV)
eFunds Corporation (EFD)
Uniroyal Technology Corp.(UTCIQ)
Again, if you are affected by a settled case, then you should
contact the claims administrator (rather than us). However,
if you are an affected investor in any of the companies under
investigation, you many wish to contact us so that you
can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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