The Big Short: Alleged Security Flaws Fuel Bet Against St. Jude Medical. From Security Ledger. Call it The Big Short – or maybe just the medical device industry’s “Shot Heard Round The World”: a report from Muddy Waters Research recommends that its readers bet against (or “short”) St. Jude Medical after learning of serious security vulnerabilities in a range of the company’s implantable cardiac devices.
The Muddy Waters report on St. Jude’s set off a steep sell off in St. Jude Medical’s stock, which finished the day down 5%, helping to push down medical stocks overall. The report cites the “strong possibility that close to half of STJ’s revenue is about to disappear for approximately two years” as a result of “product safety” issues stemming from remotely exploitable vulnerabilities in STJ’s pacemakers, implantable cardioverter defibrillator (ICD), and cardiac resynchronization therapy (CRT) devices. The vulnerabilities are linked to St. Jude’s Merlin@home remote patient management platform, said Muddy Waters.