• Joe Capitalism

    This is absolutely abuse of the legal system – in regards to investigating the sale of stock. If a private investor (and non-employee) shareholder unloaded it in November of 07 based on their prediction of a market collapse or a change in Stryker's business model that would affect stock price – no one would bat an eye. We can't set up a system designed to make private investors money and then complain when it works. To say that insiders are due investigation because they “took advantage” is vague and opens the door for too many legal cases and over-regulation.

    However, it is totally appropriate for an investigation into quality standards and documentation since there are notified bodies that oversee those standards and all companies must follow those rules, regardless of whether or not they like how it affects their operational costs.

  • SpineGuy

    Robbins Umeda specializes in this kind of litigation and trust me, Stryker is in for it. They are going to have to produce every conceivable document and the truth will come out. Unfortunately for them, it appears at first pass that this is abuse of the legal system, however, we must remember that where there is smoke there is usually fire and Robbins Umeda wouldn't have taken this case unless their due diligence came back with something at least somewhat compelling. It will be interesting to see where this goes. Probably a settlement to avoid the truth from coming out.

  • graftguy

    Most ortho stocks swooned during this period. Valuations were very high and selling is a natural behavior.

  • Frustrated

    There is no doubt some fire to go with the smoke. But, when is the proctology exam going to end for ortho? Its been one long colonoscopy for us and its time they move on already!

  • Michael Dayton

    Surely the stock sales during that period by insiders will raise suspicions in the current market microscope, but if the allegation that the company intentionally did not comply with the FDA quality systems requirements, that's corporate suicide…. can you say consent decree?