Stockholders v MiniMed, Inc.
MiniMed Stockholders Reach $1.25 Million Settlement in Aftermath of 2001 Acquisition by Medtronic
The parties have reached a tentative $1.25 million settlement in a class action filed against MiniMed, Inc. and certain of its officers and directors by stockholders who held the company's common stock as of July 16, 2001. Persons eligible to participate in the settlement must submit a proof of claim form postmarked no later than September 13, 2004.
This litigation grows out of the 2001 acquisition of MiniMed by Medtronic, Inc., in which all outstanding shares of MiniMed were purchased for $48 per share. Medtronic simultaneously acquired Medical Research Group, a company with related technology that was also founded by MiniMed's founder, Mr. Al Mann, for approximately $420 million. The action alleges that the proxy statement seeking shareholder approval of MiniMed contained insufficient information regarding the value of MiniMed as compared to MRG, which was allegedly overvalued. Because MiniMed shareholders were not made aware of the value of their stock, they were allegedly undercompensated in the merger because Medtronic would have paid more for MiniMed had it paid less for MRG.
Cash payments will be distributed to class members who submit valid, timely proof of claim forms as follows: To the extent there are sufficient funds in the settlement fund, authorized claimants will receive an amount equal to their claim, unless the settlement fund is not sufficient to permit payment of the total claims; if that happens, each claimant will be paid the percentage of the settlement fund that each claim bears to the total of the claims of all authorized claimants. Claims will be calculated by equally dividing the settlement fund among claimants, after all legitimate costs have been paid.
Completed proof of claim forms should be mailed to:
MiniMed Shareholder Litigation
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 8040
San Rafael, CA 94912-8040
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for August 10, 2004
