Court Rejects Investor Suit Against Medical Devices Maker Stryker Corp.

The U.S. District Court for the Western District of Michigan March 30 dismissed with prejudice a class securities fraud suit alleging that Stryker Corp. and two senior officers concealed the full scope of the medical device concern’s compliance and regulatory issues and misrepresented that remedial costs would not compromise earnings projections (City of Pontiac General Employees’ Retirement System v. Stryker Corp.).

The court, in a ruling authored by Judge Gordon J. Quist, said that the plaintiffs alleged “at most, poor management decisions.”

The defendants allegedly fraudulently schemed to achieve 20 percent earnings-per-share growth by cutting corners on quality ...