Investors should celebrate a Supreme Court ruling in favor of Medtronic
In an 8-1 decision, the high court ruled this week against the estate of a patient who suffered serious injuries when one of Medtronic's catheters burst during a medical procedure. The court ruled that the estate couldn't sue under state law because the device was approved by the FDA under federal law.
The ruling extends beyond Medtronic since it protects other medical-device makers, such as Johnson & Johnson
The decision could also affect biotech and pharmaceutical companies like Amgen
The ruling is a huge win for investors, reducing the costs involved with fending off and losing lawsuits as well as helping alleviate the uncertainty that almost always hangs over stocks with pending lawsuits.
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