Disclosing Medical Device Vulnerabilities
On Thursday, August 25, Muddy Waters Capital published a report on St. Jude Medical, a medical device manufacturer. The report alleges numerous critical vulnerabilities in implantable devices, namely pacemakers, cardiac devices, cardioverter defibrillators, and cardiac re-synchronization therapy devices. While the disclosure of medical device vulnerabilities is nothing new, the manner in which it was done has been highly controversial. The research was commissioned by Muddy Waters and undertaken by MedSec, a cybersecurity research company focused on the healthcare industry. Muddy Waters shorted St. Jude’s stock, essentially recommending in the report that investors bet against St. Jude Medical, stating that “there is a strong possibility that close to half of STJ’s revenue is about to disappear for approximately two years” as a result of the findings.
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