On June 15, 2009, the Court appointed the Genesee County Employees’ Retirement System, Wayne County Employees’ Retirement System, and Peter J. Tortora were appointed as Co-Lead Plaintiffs and approved their selection of Labaton Sucharow LLP to serve as Co-Lead Counsel in In re Spectranetics Corporation Securities Litigation, 08-cv-02048-REB-KLM (D. Colo.). Lead Plaintiffs represent a class of persons and entities that purchased Spectranetics securities between March 16, 2007 and September 4, 2008, inclusive (the “Class Period”).

The case stems from allegations regarding the Company’s illegal marketing of certain of its products. On September 4, 2008, Spectranetics shocked investors when it announced that a search warrant was executed at its offices by the U.S. Food and Drug Administration and U.S. Immigration and Customs Enforcement. The Company stated that the search warrant requested information and correspondence relating to the promotion, use, testing, marketing and sales regarding certain of the Company’s products, for payments made to medical personnel and an identified institution for the Company’s products; for the promotion, use, testing, experimentation, delivery, marketing and sales of catheter guidewires and balloon catheters manufactured by certain third parties outside of the United States; for information regarding two post-market studies the Company completed during the period from 2002 to 2005, and for payments made to medical personnel in connection with those studies; and for compensation packages of certain of the Company’s personnel.

Throughout the Class Period, Defendants allegedly failed to disclose that: (1) the Company had engaged in illicit activities related to the promotion, use, testing, marketing and sales of catheter guidewires and balloon catheters manufactured by third parties outside the United States; (2) the Company had improperly received shipments from an international source; (3) the Company had marketed and sold certain of its products for unapproved use; (4) a significant portion of the Company’s revenues were generated by the sales of such products intended for unapproved uses; (5) the Company had made improper payments to medical professionals who participated in certain clinical studies for the Company; (6) the Company had engaged in questionable compensation practices for certain of its employees; (7) such questionable behavior would necessarily subject the Company to an extensive investigation by federal authorities; (8) the Company lacked adequate internal and financial controls, including effective regulatory and compliance controls; and (9) as a result of the above, the Company’s financial statements were materially false and misleading.

Upon the release of this news, the Company’s shares fell $4.27 per share, or more than 47%, to close on September 4, 2008 at $4.73 per share, on unusually heavy trading volume. Lead Plaintiffs filed their Consolidated Class Action Complaint on August 4, 2009. On December 29, 2009, after Defendants’ motion to dismiss was fully briefed, the Company announced that it had settled claims with the government relating to the federal criminal investigation. The Court granted Lead Plaintiffs’ motion to file a Supplemental Consolidated Class Action Complaint to allege information newly disclosed in the settlement agreement and related documents. Defendants’ motion to dismiss the Supplemental Complaint will be fully briefed as of May 3, 2010.