St. Jude Medical, Inc.

Robbins LLP: Acquisition of St. Jude Medical, Inc. (STJ) by Abbott Laboratories (ABT) May Not Be in Shareholders’ Best Interests

Robbins LLP is investigating the proposed acquisition of St. Jude Medical, Inc. (NYSE: STJ) by Abbott Laboratories (NYSE: ABT). On April 28, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Abbott will acquire St. Jude Medical. Under the terms of the agreement St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, the value of which is equivalent to $85.00 for each share of St. Jude Medical common stock.

Is the Proposed Acquisition Best for St. Jude Medical and Its Shareholders?

Robbins LLP’s investigation focuses on whether the board of directors at St. Jude Medical is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

On April 20, 2016, St. Jude Medical reported strong earnings results for its first quarter 2016. St. Jude Medical reported net sales of $1.45 billion for the three months ended April 4, 2016, an 8% increase from the same period of the prior year. Additionally, St. Jude Medical has beaten analyst estimates for adjusted earnings per share and adjusted net income in three out of the past four quarters. In commenting on these results, St. Jude Medical President and Chief Executive Officer Michael T. Rousseau remarked, “In the first quarter, we delivered sales and adjusted earnings per share at or above the high end of our guidance. With 10 product approvals and associated launches in key regions around the world, we demonstrated our commitment to bringing lifesaving products to patients while driving sales momentum in the areas of atrial fibrillation, heart failure and neuromodulation.”

In light of these facts, Robbins LLP is examining St. Jude Medical’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.

St. Jude Medical shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.

St. Jude Medical shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

Send us a message for more information.

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