St. Jude Implant Case: Expert Validates Muddy Waters Claim

Cybersecurity firm Bishop Fox says tests have confirmed that cardiac devices made by St. Jude are susceptible to hacking.

Muddy Waters in court presented a 53-page report from cybersecurity firm Bishop Fox that reportedly validates the short-sellers claims of vulnerabilities in heart devices manufactured by St. Jude Medical Inc, reports Reuters. Muddy Waters was responding to a St. Jude suit filed against it and cyber research firm MedSec Holdings for claiming the implant was susceptible to hacking.
St. Jude has disputed the claims and US regulators have asked patients to continue with the devices while it investigates saying the benefits “far outweigh any potential cyber security vulnerabilities.”
The security flaws claim initially was made by Muddy Waters in a report in which it shorted the stock, predicting it would fall as a result. Bishop Fox, later hired by the company to validate its claim, said with help from specialists, it tested attacks on the cardiac implant and discovered its wireless communication can be hacked, turning the devices into weapons.
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St. Jude Implant Case: Expert Validates Muddy Waters Claim