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BREAKING- NuVasive Discloses that it Received a Federal Subpoena (NUVA)

In a regulatory filing, NuVasive (NASDAQ: NUVA) disclosed that during the three months ending June 30, it had received a federal administrative subpoena from the Office of the Inspector General of the U.S. Department of Heath and Human Services.

It said that the subpoena was in connection with possible false or otherwise improper claims submitted to Medicare or Medicaid. The subpoena asks for documents from January of 2007 to April of 2013. NuVasive says that it is cooperating fully.

NuVasive is a $1.1 billion company that develops minimally invasive surgical products for the spine.

Wednesday morning, Piper Jaffray says that this disclosure will likely overshadow solid Q2 earnings and that a settlement will likely be reached that is manageable for the company. It recommends buying the stock on any near-term weakness. It raised its price target on the stock from $24 to $31.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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