Researchers: Short-seller ’ s claims about St. Jude Medical devices have ‘ major flaws ’

A short-seller’s report that cardiac rhythm management devices made by STJ are vulnerable to hackers has “major flaws” and doesn’t prove its allegations, according to researchers from the University of Michigan. Muddy Waters, the firm founded by well-known short-seller Carson Block, last week aimed to disrupt the pending, $25 billion acquisition of St. Jude by Abbott (NYSE:ABT); in addition to his bet that STJ share prices will fall, Block is long on ABT shares. His shop and a startup cybersecurity business called MedSec alleged last week that St. Jude’s implanted cardiac rhythm management devices pose a cybersecurity risk due to vulnerabilities in the Merlin@home monitor. The Little Canada, Minn.-based company immediately denied the charges and fired off a detailed rebuttal the next day; in response, Muddy Waters yesterday claimed that St. Jude instead proved the short-seller’s assertions. Today St. Jude said that the latest salvo from Muddy Waters, a video purporting to show a Merlin@home device succumbing to a hack, actually shows that the device functioned just as designed. The U-M researchers said they reproduced the experiments cited in the MedSec report, reproducing error messages Muddy Waters cited as evidence of a “crash attack.” “But the messages are the same set of errors that display if the device isn’t properly plugged in,” according to the researchers. “We’re not saying the report is f...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Cardiovascular Legal News Wall Street Beat St. Jude Medical Source Type: news