Four things to know:
1. A group of 27 Medtronic shareholders, including some individuals retired from the company, say they were “injured by the deal” because the company paid more than $2 billion in capital-gains taxes that Medtronic shareholders did not have to pay.
2. The plaintiffs argue that forcing some shareholders to pay the tax without revealing other options was a “wrongdoing,” according to the report. Medtronic denies wrongdoing associated with the acquisition and points to Medtronic nearly doubling revenue in the past half-decade.
3. Prior to the final deal, Medtronic directors weighed a deal structure that would avoid $2 billion-plus in taxes for shareholders that shareholders didn’t know about. However, Medtronic’s outside counsel maintained the deal couldn’t have been done differently.
4. A district judge recommended the two sides settle the dispute, and expects to rule on whether up to half a million patients could sue the company as a group.
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