Some Miami residents may have been injured by defective products. When consumers uses products that cause significant injury, they have the legal right to file a lawsuit against the manufacturer. But what if the person filing the claim is not a consumer? A shareholder of medical device company Thoratec is suing the company after a recall saw stock prices decline.
The shareholder is suing on behalf of himself and other stockholders who bought Thoratec stock from April 29, 2010 to Nov. 27, 2013. He believes he was misled about the company’s HeartMate II implant device and its increased risk of blood clots in users.
In 2012, the FDA launched a recall, claiming that a component on the device could tear the outflow conduit, potentially causing serious injury or even death. In 2013, a study showed that use of the HeartMate II left ventricular assist device dramatically increased the risk of blood clots. Both of these incidents brought the stock’s prices down.
Thoratec believes that these claims are outdated and that the risk of adverse events has decreased since these incidents occurred. In fact, survival has improved significantly and rates of infection, bleeding and stroke have decreased as well.
Although the shareholders suffered no physical injuries from the product, they believe that the product recall and increased risk of consumer injury has caused them significant financial damage. However, there’s always a risk when investing in the stock market. Any company can be accused of manufacturing defective products, a claim which can affect stock price for a temporary time. Filing a lawsuit may hurt the company even more, but that’s up to a judge and jury to decide.
Source: Mass Device, “Thoratec shareholder seeks class action over recall, blood clot study” Brad Perriello, Jan. 28, 2014