Spectranetics Corp., a medical device company based in Colorado Springs, has agreed in principle to pay $8.5 million to settle a securities class-action suit against the company and several of its current and former officers and directors.
The publicly traded company this morning also said it was ready to settle a stockholder derivative case naming it as a “nominal” defendant, as well as several of its current and former officers and directors.
The class action was brought on behalf of investors who bought or acquired shares of Spectranetics’ common stock between March 16, 2007 and Sept. 4, 2008.
Under the proposed settlement, which is subject to approval by a federal judge, the company’s insurers will pay the $8.5 million.
The company said it also would pay attorneys fees of $350,000.
In a statement, the company said it and the individual defendants have “steadfastly maintained” that the claims against them were “without merit, and have vigorously contested those claims.”
As part of the settlements, the defendants continue to deny any liability or wrongdoing under securities laws.
“I’m pleased that, upon approval by the court, we can put the securities class-action lawsuit and stockholder derivative case behind us and avoid the distraction and cost associated with protracted litigation,” said Emile J. Geisenheimer, Spectranetics’ chairman, president and CEO.
Three Spectranetics stockholders filed a separate lawsuit on May 28 asserting various federal and state claims arising out of the same facts alleged in the securities class-action. Two of the three stockholders claimed a loss of $1.27 million. Spectranetics said it intends to fight that lawsuit.
Spectranetics makes and sells devices used to treat arterial blockages in the heart and legs as well as the removal of problematic pacemaker and defibrillator leads.