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  "docSlug": "9686328c7016",
  "documentTitle": "St. Jude Medical (STJ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-08-29 00:00:00",
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  "notes": "The slide deconstructs specific rhetorical devices used by a company (STJ) in response to a security report (MWC).",
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      "kind": "callout",
      "text": "This statement is a veiled admission to lesser security quality in previous devices – many of which are currently being used by patients – and the need to continue improving their existing security protocols and processes.",
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      "kind": "paragraph",
      "text": "Our analysis concluded that the majority of the observations in the report apply to older versions of the Merlin@home devices...",
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      "kind": "paragraph",
      "text": "This statement is a veiled admission to lesser security quality in previous devices... The insertion of the phrase 'We are confident...' is a commonly used Perception Qualifier.",
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      "kind": "paragraph",
      "text": "By inserting the word 'majority' they are indicating that some of the observations made by MWC apply to more current versions...",
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      "kind": "paragraph",
      "text": "Borrowed Credibility. When companies repeatedly refer to regulatory bodies, legal processes, and industry standards, one should be cautious.",
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      "kind": "paragraph",
      "text": "The real concern. It is my opinion that STJ tipped their hand in the following statement:",
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      "kind": "paragraph",
      "text": "Their analysis? Are they referring to their analysis of the MWC report? If so, are they consenting to the notion that MWC's findings represent 'potential issues'...",
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      "kind": "paragraph",
      "text": "These references are a critical piece of their Diversion Narrative – a story designed to 'look away' from the specific issue to a better story about past compliance...",
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      "kind": "quote",
      "text": "We are confident in the technology that we provide and in our process for continuously building upon our security protocols and processes.",
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      "text": "We recognize the importance of providing physicians with up-to-date and accurate information in a timely and responsible manner...",
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      "kind": "quote",
      "text": "\"Our analysis concluded that the majority of the observations in the report apply to older versions of the Merlin@home devices (i.e., those that have not been updated through the automated remote upgrade process).\" — St. Jude Medical; \"We are confident in the technology that we provide and in our process for continuously building upon our security protocols and processes.\" — St. Jude Medical; \"We recognize the importance of providing physicians with up-to-date and accurate information in a timely and responsible manner so that they can make informed patient care decisions. Our analysis reinforces the need for researchers and manufactures to work together to discuss and resolve potential issues together to avoid unnecessarily alarming patients.\" — St. Jude Medical",
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