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UNITED STATES DISTRICT COURTDISTRICT OF MINNESOTAMINNEAPOLIS FIREFIGHTERS’ RELIEF ASSOCIATION,Plaintiffs,v.Civil No. 08‐6324 (PAM/AJB)MEDTRONIC, INC., et al.,Defendants.NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSEDSETTLEMENT, SETTLEMENT FAIRNESS HEARING, AND MOTIONFOR ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSESA Federal Court authorized this Notice. This is not a solicitation from a lawyer.NOTICE OF PENDENCY OF CLASS ACTION: Please be advised that your rights may be affected by a class action lawsuit (the“Action”) pending in the United States District Court for the District of Minnesota (the “Court”) if, during the period fromNovember 20, 2006 through and including November 17, 2008 (the “Class Period”), you purchased or otherwiseacquired the common stock of Medtronic, Inc. (“Medtronic” or the “Company”) and were damaged thereby.NOTICE OF SETTLEMENT: Please also be advised that the Court‐appointed Lead Plaintiffs, Teachers’ Retirement System ofOklahoma, Oklahoma Firefighters Pension Fund, Union Asset Management Holding AG, and Danske Invest ManagementA/S (“Lead Plaintiffs”), on behalf of themselves and the Class (as defined in ¶ 22 below), have reached a proposedsettlement of the Action with Defendants for a total of 85 million in cash that, if approved, will resolve all claims in theAction.1PLEASE READ THIS NOTICE CAREFULLY. This Notice explains important rights you may have, including the possiblereceipt of cash from the Settlement. If you are a Class Member, your legal rights will be affected whether or not youact.1.Description of the Action and Class: This Notice relates to a proposed Settlement of claims in a pending classaction lawsuit brought by investors alleging that the price of Medtronic common stock was artificially inflated during the ClassPeriod as a result of alleged material false statements and omissions by Defendant Medtronic and the Individual DefendantsArthur D. Collins, Jr., William A. Hawkins, and Gary L. Ellis (together with Medtronic, the “Defendants”) during the Class Periodconcerning one of Medtronic’s medical products, the INFUSE bone graft system. The proposed Settlement, if approved bythe Court, will settle claims of all persons and entities who purchased or otherwise acquired Medtronic common stock duringthe Class Period (i.e., from November 20, 2006 through and including November 17, 2008), and who were damaged thereby(the “Class”), except for certain persons and entities who are excluded from the Class by definition (see ¶ 22 below) or whovalidly elect to exclude themselves from the Class (see ¶¶ 71‐73 below).2.Statement of Class’s Recovery: Subject to Court approval, and as described more fully below, Lead Plaintiffs,on behalf of themselves and the Class, have agreed to settle all claims based on the purchase or acquisition of Medtroniccommon stock that were or could have been asserted against Defendants in the Action in exchange for a settlement paymentof 85,000,000 in cash (the “Settlement Amount”) to be deposited into an interest‐bearing escrow account (the “SettlementFund”). The Net Settlement Fund (the Settlement Fund less Taxes, Notice and Administration Costs, and any attorneys’ feesand Litigation Expenses awarded by the Court) will be distributed in accordance with a plan of allocation that is approved by1All capitalized terms used in this Notice that are not otherwise defined herein shall have the meanings provided in theStipulation and Agreement of Settlement dated July 20, 2012 (the “Stipulation”), which is available on the website establishedfor the Settlement at www.MDTsecuritieslitigationsettlement.com.
the Court, which will determine how the Net Settlement Fund shall be allocated among members of the Class. The proposedplan of allocation (the “Plan of Allocation”) is set forth on pages 7 ‐ 11 below.3.Estimate of Average Amount of Recovery Per Share: Lead Plaintiffs’ damages expert estimates thatapproximately 612,678,591 shares of Medtronic common stock purchased during the Class Period may have been affected bythe conduct at issue in the Action. If all Class Members elect to participate in the Settlement, the estimated average recoveryper affected share of Medtronic common stock would be approximately 0.14 before deduction of Court‐awarded attorneys’fees and Litigation Expenses and the costs of providing notice and administering the Settlement. Class Members should note,however, that this is only an estimate based on the overall number of potentially affected shares. Some Class Members mayrecover more or less than the estimated amount per share.4.Statement of Average Amount of Damages Per Share: The Parties do not agree on the average amount ofdamages per share that would be recoverable if Lead Plaintiffs were to prevail in the Action. Defendants do not agree withthe assertion that they engaged in any actionable conduct under the federal securities laws or that any damages weresuffered by any members of the Class as a result of their conduct.5.Statement of Attorneys’ Fees and Expenses Sought: The Court‐appointed Lead Counsel, Bernstein Litowitz,Berger & Grossmann LLP, Kessler Topaz Meltzer & Check, LLP (f/k/a Barroway Topaz Kessler Meltzer & Check, LLP), Grant &Eisenhofer PA, Motley Rice LLC, and Chestnut Cambronne PA, which have been prosecuting the Action on a wholly contingentbasis since its inception in 2008, have not received any payment of attorneys’ fees for their representation of the Class andthey have advanced the funds to pay expenses necessarily incurred to prosecute the Action. Lead Counsel will apply to theCourt for an award of attorneys’ fees from the Settlement Fund in an amount not to exceed 25% of the Settlement Fund. Inaddition, Lead Counsel also will apply for the reimbursement of Litigation Expenses paid or incurred in connection with theprosecution and resolution of the Action, in an amount not to exceed 2,000,000, which may include the reasonable costs andexpenses of Lead Plaintiffs directly related to the representation of the Class. If the Court approves Lead Counsel’s fee andexpense application, the average cost per affected share of Medtronic common stock will be approximately 0.038.6.Identification of Attorneys’ Representatives: Lead Plaintiffs and the Class are being represented by:Salvatore J. Graziano, Esq., Bernstein Litowitz Berger & Grossmann LLP, 1285 Avenue of the Americas, New York, New York10019, (800) 380‐8496, blbg@blbglaw.com; Ramzi Abadou, Esq., Kessler Topaz Meltzer & Check, LLP, 580 California Street,Suite 1750, San Francisco, CA 94104 (415) 400‐3000, www.ktmc.com; Jeff A. Almeida, Esq., Grant & Eisenhofer P.A., 123Justison Street, Wilmington, DE 19801, (302) 622‐7000, www.gelaw.com; James M. Hughes, Esq., Motley Rice LLC, 28Bridgeside Blvd., Mount Pleasant, SC 29464, (843) 216‐9000, www.motleyrice.com; and Karl L. Cambronne, Esq. ChestnutCambronne PA, 17 Washington Avenue North, Suite 300, Minneapolis, MN 55401‐2048, (612) 339‐7300,www.chestnutcambronne.com.7.Reasons for the Settlement: Lead Plaintiffs’ principal reason for entering into the Settlement is thesubstantial cash benefit payable to the Class now, without further risk or the delays inherent in further litigation. Thesignificant cash benefit under the Settlement must be considered against the significant risk that a smaller recovery – or,indeed, no recovery at all – might be achieved after contested motions, trial and likely appeals, a process that could lastseveral years into the future. For Defendants, who deny all allegations of wrongdoing or liability whatsoever, the principalreason for entering into the Settlement is to eliminate the expense, risks, and uncertainty of further litigation.YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT:SUBMIT A CLAIM FORM POSTMARKED NO LATERTHAN DECEMBER 11, 2012.This is the only way to be eligible to get a payment from theSettlement. If you are a Class Member and you remain in theClass, you will be bound by the Settlement as approved by theCourt and you will give up any Settled Claims (as defined in ¶ 63below) that you have against Defendants and the otherReleased Parties (defined in ¶ 64 below), so, if you remain inthe Class, it is in your interest to submit a Claim Form.EXCLUDE YOURSELF FROM THE CLASS BYSUBMITTING A WRITTEN REQUEST FOR EXCLUSIONSO THAT IT IS RECEIVED NO LATER THANOCTOBER 18, 2012.If you exclude yourself from the Class, you will not be eligible toget any payment from the Settlement Fund. This is the onlyoption that allows you to ever be part of any other proceedingagainst any of the Defendants or the other Released Partiesconcerning the Settled Claims.2
OBJECT TO THE SETTLEMENT BY SUBMITTING AWRITTEN OBJECTION SO THAT IT IS RECEIVED NOLATER THAN OCTOBER 18, 2012.If you do not like the proposed Settlement, the proposed Planof Allocation, or the request for attorneys’ fees andreimbursement of Litigation Expenses, you may write to theCourt and explain why you do not like them. You cannot objectto the Settlement, the Plan of Allocation or the fee and expenserequest unless you are a Class Member and do not excludeyourself.GO TO THE HEARING ON NOVEMBER 8, 2012 AT 9:45A.M., AND FILE A NOTICE OF INTENTION TO APPEARSO THAT IT IS RECEIVED NO LATER THAN OCTOBER18, 2012.Filing a written objection and notice of intention to appear byOctober 18, 2012 allows you to speak in Court about thefairness of the proposed Settlement, the Plan of Allocation, orthe request for attorneys’ fees and reimbursement of LitigationExpenses. If you submit a written objection, you may (but donot have to) attend the hearing and speak to the Court aboutyour objection.DO NOTHING.If you are a member of the Class and you do not submit a ClaimForm by December 11, 2012, you will not be eligible to receiveany payment from the Settlement Fund. You will, however,remain a member of the Class, which means that you give up yourright to sue about the claims that are resolved by the Settlementand you will be bound by any judgments or orders entered by theCourt in the Action.WHAT THIS NOTICE CONTAINSWhy Did I Get This Notice?Page 3What Is This Case About?Page 4How Do I Know If I Am Affected By The Settlement?Page 5What Are Lead Plaintiffs’ Reasons For The Settlement?Page 6What Might Happen If There Were No Settlement?Page 6How Much Will My Payment Be?Page 6What Rights Am I Giving Up By Remaining In The Class?Page 11What Payment Are The Attorneys For The Class Seeking? How Will The Lawyers Be Paid?Page 11How Do I Participate In The Settlement? What Do I Need To Do?Page 12What If I Do Not Want To Participate In The Settlement? How Do I Exclude Myself?Page 12When And Where Will The Court Decide Whether To Approve The Settlement?Do I Have To Come To The Hearing? May I Speak At The Hearing If I Don’t Like The Settlement?Page 13What If I Bought Shares On Someone Else’s Behalf?Page 14Can I See The Court File? Whom Should I Contact If I Have Questions?Page 14WHY DID I GET THIS NOTICE?8.This Notice is being sent to you pursuant to an Order of the United States District Court for the District ofMinnesota because you or someone in your family or an investment account for which you serve as custodian may havepurchased or otherwise acquired Medtronic common stock during the Class Period. The Court has directed us to send you thisNotice because, as a potential Class Member, you have a right to know about your options before the Court rules on theproposed settlement of this case. Additionally, you have the right to understand how a class action lawsuit may generally3
affect your legal rights. If the Court approves the Settlement, the claims administrator selected by Lead Plaintiffs andapproved by the Court will make payments pursuant to the Settlement after any objections and appeals are resolved.9.In a class action lawsuit, the Court selects one or more people, known as class representatives, to sue onbehalf of all people with similar claims, commonly known as the class or the class members. In this Action, the Court hasappointed the Teachers’ Retirement System of Oklahoma, Oklahoma Firefighters Pension Fund, Union Asset ManagementHolding AG, and Danske Invest Management A/S to serve as “Lead Plaintiffs” under a federal law governing lawsuits such asthis one, and has appointed the law firms of Bernstein Litowitz Berger & Grossmann LLP, Kessler Topaz Meltzer & Check, LLP,Grant & Eisenhofer PA, Motley Rice LLC, and Chestnut Cambronne PA as Lead Counsel in the Action. A class action is a type oflawsuit in which the claims of a number of individuals are resolved together, thus providing the class members with bothconsistency and efficiency. Once the class is certified, the Court must resolve all issues on behalf of the class members, exceptfor any persons who choose to exclude themselves from the class. (For more information on excluding yourself from theClass, please read “What If I Do Not Want Participate In the Settlement? How Do I Exclude Myself?,” on page 12 below.)10.The Court in charge of this case is the United States District Court for the District of Minnesota, and the caseis known as Minneapolis Firefighters’ Relief Association v. Medtronic, Inc., et al., Civil No. 08‐6324 (PAM/AJB). The Judgepresiding over this case is the Honorable Paul A. Magnuson, United States District Judge. The people who are suing are calledplaintiffs, and those who are being sued are called defendants. In this case, several of the named plaintiffs are referred to asthe Lead Plaintiffs and they are suing on behalf of themselves and the Class, and the Defendants are Medtronic and theIndividual Defendants. If the Settlement is approved, it will resolve all claims in the Action by Class Members againstDefendants and will bring the Action to an end.11.This Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligiblefor them, and how to get them. The purpose of this Notice is to inform you of this case, that it is a class action, how you mightbe affected, and how to exclude yourself from the Class if you wish to do so. It also is being sent to inform you of the terms ofthe proposed Settlement, and of a hearing to be held by the Court to consider the fairness, reasonableness, and adequacy ofthe proposed Settlement, the proposed Plan of Allocation, and the motion by Lead Counsel for an award of attorneys’ feesand reimbursement of Litigation Expenses (the “Settlement Hearing”).12.The Settlement Hearing will be held on November 8, 2012 at 9:45 a.m., before the Honorable Paul A.Magnuson, at the Warren E. Burger Federal Building and United States Courthouse, 316 North Robert Street, St. Paul, MN,55101, to determine:(a)whether the proposed Settlement is fair, reasonable, and adequate and should be approved by the Court;(b)whether the Settled Claims against the Defendants and the other Released Parties should be fully and finallydismissed with prejudice as set forth in the Stipulation;(c)whether the proposed Plan of Allocation is fair and reasonable and should be approved by the Court; and(d)whether Lead Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation Expensesshould be approved by the Court.13.This Notice does not express any opinion by the Court concerning the merits of any claim in the Action, andthe Court still has to decide whether to approve the Settlement. If the Court approves the Settlement, payments toAuthorized Claimants will be made after any appeals are resolved, and after the completion of all claims processing. Please bepatient.WHAT IS THIS CASE ABOUT?14.On December 10, 2008, this putative securities class action was filed in the United States District Court forthe District of Minnesota against Medtronic and three of its senior officers. On May 26, 2009, pursuant to the PrivateSecurities Litigation Reform Act of 1995, the Court appointed Lead Plaintiffs and approved Lead Plaintiffs’ selection of LeadCounsel.15.On August 21, 2009, Lead Plaintiffs filed their amended complaint, the Consolidated Complaint for Violationsof the Federal Securities Laws (“Complaint”), alleging conduct relating to the promotion of one of the Company’s products for“off‐label” use. The Complaint alleges that Defendants made false and misleading statements to investors regarding INFUSE ,and concealed this misconduct and the risks it posed to the Company and its shareholders.4
16.On October 5, 2009, Defendants filed motions to dismiss the Complaint. These motions were fully briefed bythe Parties. On February 3, 2010, after hearing oral argument, the Court denied in part and granted in part Defendants’motions to dismiss.17.On January 14, 2011, Lead Plaintiffs filed their motion for class certification. After full briefing and oralargument, on December 12, 2011, the Court certified the action to proceed as a class action and appointed as classrepresentatives Plaintiffs Oklahoma Teachers’ Retirement System, Oklahoma Firefighters Pension Fund, Union AssetManagement Holding AG, Danske Invest Management A/S, and Westmoreland County Employee Retirement System.18.The Parties and their counsel have vigorously pursued discovery in this case, including by filing numerousmotions to compel production of documents including documents over which privilege was claimed and they have engaged inextensive motion practice before the Court.19.The Parties have engaged in extensive settlement discussions, including discussions with the assistance of aprivately retained mediator, and eventually with the Honorable Magistrate Judge Arthur Boylan. In March 2012, the Partiesreached an agreement‐in‐principle to settle the Action.20.Based upon their investigation and prosecution of the Action, Lead Plaintiffs and Lead Counsel haveconcluded that the terms and conditions of this Stipulation are fair, reasonable and adequate to Lead Plaintiffs and the othermembers of the Class, and in their best interests. Based on Lead Plaintiffs’ direct oversight of the prosecution of this matteralong with the input of Lead Counsel, Lead Plaintiffs have agreed to settle the claims raised in the Action pursuant to theterms and provisions of the Stipulation, after considering (a) the substantial benefits that Lead Plaintiffs and the othermembers of the Class will receive from the resolution of the Action, (b) the attendant risks of litigation, and (c) the desirabilityof permitting the Settlement to be consummated as provided by the terms of the Stipulation. The fact that Lead Plaintiffshave agreed to settle the Action shall not be construed or deemed to be a concession by Lead Plaintiffs of any infirmity in theclaims asserted in the Action. Each of the Defendants denies any wrongdoing, and the fact that Defendants have agreed tosettle the Action shall not be construed as or deemed to be evidence of or an admission or concession on the part of any ofthe Defendants with respect to any claim or of any fault or liability or wrongdoing or damage whatsoever, or any infirmity inthe defenses that Defendants have, or could have asserted.21.On July 23, 2012, the Court preliminarily approved the Settlement, authorized this Notice to be sent topotential Class Members, and scheduled the Settlement Hearing to consider whether to grant final approval to theSettlement.HOW DO I KNOW IF I AM AFFECTED BY THE SETTLEMENT?22.If you are a member of the Class, you are subject to the Settlement unless you timely request to be excluded.The Class consists of:All persons or entities who purchased or otherwise acquired Medtronic common stock duringthe class period, from November 20, 2006 through November 17, 2008, and who were damagedthereby.Excluded from the Class are (i) Defendants; (ii) members of the Immediate Family of each of theIndividual Defendants; (iii) any person who was a Section 16 officer and/or Medtronic boardmember during the Class Period; (iv) any subsidiary of Medtronic; (v) any firm, trust, corporationor entity in which any Defendant has a Controlling Inter
MEDTRONIC, INC., et al., . NOTICE OF SETTLEMENT: Please also be advised that the Court‐appointed Lead Plaintiffs, Teachers’ Retirement System of Oklahoma, Oklahoma Firefighters Pension Fund, Union Asset Management Holding AG, and Danske Invest Management . will be distributed in accordance with a
