NEW YORK--(BUSINESS WIRE)--Newman Ferrara LLP announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts against ABIOMED, Inc. (“Abiomed”) (Nasdaq: ABMD) and certain of its executive officers, alleging violations of federal securities laws.
Investors who purchased Abiomed securities between August 5, 2011 and October 31, 2012 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than January 15, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.
Abiomed provides cardiac assist devices designed to provide circulatory support and care to patients with acute heart failure. One of Abiomed’s primary products is a micro heart pump called the Impella 2.5 catheter. The Complaint alleges that the defendants issued false and/or misleading statements and/or failed to disclose that: (1) Abiomed was improperly marketing and labeling Impella 2.5 and had received warnings about such improper practices from the Food and Drug Administration; (2) Abiomed’s financial results would be materially negatively impacted if Abiomed was forced to cease improperly marketing and labeling Impella 2.5; and (3) Abiomed lacked adequate internal and financial controls.
On November 2, 2012, Abiomed disclosed that on October 26, 2012, it had been informed that the United States Attorney’s Office was conducting an investigation into Abiomed’s marketing and labeling of Impella 2.5 and on October 31, 2012, Abiomed had accepted service of a Health Insurance Portability and Accountability Act administrative subpoena related to that investigation. On this news, shares of Abiomed stock dropped 31.3% to a November 1, 2012 closing price of $13.61 per share.
Investors who purchased shares of Abiomed stock during the Class Period are encouraged to contact Newman Ferrara attorney Roy Shimon at firstname.lastname@example.org or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.