Appeals Court Dismisses Possis Shareholder Lawsuit

Possis Medical Inc. said Monday an appellate court upheld the dismissal of a lawsuit that alleged the medical device maker misled shareholders about the effectiveness of its blood clot removal product in a study. The shareholder lawsuit alleged that the company violated federal law by misrepresenting material information about the AngioJet Eheolytic Thrombectomy system prior to releasing study results in August of 2004. Specifically, it pointed out that two executives sold more than 360,000 personally held shares before the company announced the device’s failure in a study. The U.S. Court of Appeals for the Eighth Circuit affirmed a Federal District Court’s decision to dismiss the lawsuit, which was first filed in 2005. SOURCE: Boston.com