The 8th U.S. Circuit Court of Appeals in St. Louis voted unanimously to overturn a ruling from a chief federal judge in Minnesota that threw out a case against Medtronic related to its spinal fusion material Infuse, according to a Star Tribune report.
Here are five things to know:
1. Three plaintiffs accused Medtronic of securities fraud, according to the report, alleging the company took part in a scheme to hide the safety risks associated with Infuse and mislead investors. The chief federal judge in Minnesota threw out the case last year on procedural grounds, but the St. Louis court has revived it.
2. Lawyers for the plaintiffs, including West Virginia Pipe Trades Health & Welfare fund, Germany-based asset manager Union Asset Management and the State of Hawaii Employees' Retirement System, are pushing forward with the case, although Medtronic released a statement that it "believes the shareholder litigation is without merit."
3. California-based attorney with Robbins Geller Rudman & Dowd Shawn Williams is representing the plaintiffs. His firm also represented the plaintiffs in class action shareholder litigation against Minnetonka, Minn.-based UnitedHealth Group.
4. Both sides report a settlement isn't likely, and Medtronic released a statement affirming its commitment to "winning the case in court."
5. An appeals court in St. Louis also ruled earlier this month in a separate matter that allegations against Medtronic for fraudulent marketing of Infuse should go to trial. However, Medtronic moved to settle while denying liability in this case.