Medical-device maker Medtronic has agreed to pay $85 million to resolve a federal class-action lawsuit brought by a group of shareholders. In December 2008, the Minneapolis Firefighters' Relief Association filed a lawsuit alleging Medtronic made false and misleading public statements about its InFuse bone repair protein. The plaintiffs said Medtronic did not disclose how much of the company's revenue from InFuse came from "off-label" uses, or uses that have not been approved by regulators, did not disclose the side effects that some of those patients were suffering, and did not disclose what the plaintiffs described as illegal marketing.
The world's largest medical device company said Friday that it did not make any misrepresentation and did nothing wrong. The firefighters' group manages pension funds for Minneapolis firefighters and their families. The original lawsuit claimed Medtronic's actions inflated the company's stock price, and when the company's actions were revealed, the stock fell. The suit was consolidated into a class action in 2009.