This excerpt taken from the MDT 8-K filed Jan 18, 2008.
qui tam complaint that alleges impropriety in its business, including regarding its reimbursement practices. Although no subpoena has been issued to the Company in connection with this complaint, the USAO is investigating the Companys sales and marketing practices, including how they communicated with their customers in the past regarding the Medicare reimbursement available to hospitals and the appropriate site-of-service for using their products in surgery. The USAO has asked to review some of the Companys documentation that may be relevant to the investigation, much of which the Company has already produced. The Company believes it is in substantial compliance with the healthcare laws applicable to them. Even though the Company has not received a subpoena regarding the complaint or its allegations, it continues to voluntarily cooperate with the USAO, to permit the USAO to develop an informed opinion on whether or not to pursue any action in connection with the complaint based in part on the information provided, although timing on that decision is uncertain. At this time, the Company does not know whether the investigation or its outcome will have a material adverse impact to its business, and cannot be assured regarding any future path the USAO or any related lawsuit may take. Due to the uncertainties inherent in this process, the Company cannot accurately predict the ultimate outcome of this matter at this time and, therefore, cannot estimate the range of possible loss. Accordingly, no provision for any liability that may result upon resolution of this matter has been made in the accompanying financial statements.
In April 2006, Medtronic and several related entities (MSD) filed suit against the Company in federal district court in the Northern District of California, alleging that the Companys