- Despite being sued by St. Jude Medical (NYSE:STJ) alleging "false statements, false advertising, conspiracy and manipulation of the financial markets" related to the security of its implanted devices, short seller Muddy Waters fans the flames with a new video that reportedly shows how to reverse engineer the company's Merlin equipment allowing a hacker to manipulate certain commands which could turn the implanted cardiac device off completely or deliver an unnecessary shock to the heart.
- Predictably, St. Jude says it stands behind the security and safety of its devices and criticizes Muddy for its "irresponsible release of information that is intended for financial gain." Nevertheless, it has created a cybersecurity medical advisory board and will continue to work with researchers to ensure that it has a thorough understanding of the cyber risks and potential vulnerabilities related to its products.
- The company is in the midst of being acquired by Abbott (NYSE:ABT) for $25B.
- Shares are down 2% premarket on increased volume.