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Hagens Berman, an investor-rights law firm, today announced that it is investigating Abiomed, Inc. (NASDAQ:ABMD) (“Abiomed”) for potential violations of the securities laws following the disclosure of a Department of Justice probe into the marketing and labeling of its flagship product, the Impella 2.5 system.
Hagens Berman is investigating potential claims under the securities laws that could affect investors who purchased Abiomed common stock before the company disclosed the probe. The firm also reminded whistleblowers with inside information that rewards may be available to individuals who report information leading to a successful enforcement action by the Securities and Exchange Commission.
“The Dodd-Frank Wall Street Reform and Consumer Protection Act provides for rewards totalling up to 30 percent of any successful recovery made by the SEC for whistleblowers who provide original information,” said Reed Kathrein, a partner at Hagens Berman who is leading the firm’s investigation. “However, whistleblowers should be cautious and consult an experienced whistleblower attorney before taking action.”
Hagens Berman has extensive experience in both whistleblower and securities litigation, and has won recoveries in cases against some of the largest financial institutions and publically traded companies in the United States, including Visa, Mastercard, Boeing, OppenheimerFunds, and Charles Schwab, among others.
The firm’s investigation of Abiomed centers around the company’s Impella 2.5 system, which is used to improve blood flow in heart surgery patients. The company has disclosed a Department of Justice investigation into marketing of the product. According to media reports, the Food and Drug Administration sent a letter to Abiomed in June 2011, accusing the company of making “objectionable” claims about an Impella system and requesting that the company immediately stop marketing for uses not approved by the FDA.
“We don’t know the exact nature of the Department of Justice investigation, but it appears that this would not be the first time Abiomed has been accused of marketing the Impella system without clearance,” said Mr. Kathrein. “If Abiomed continued to market Impella systems for off-label uses after being warned by the FDA and failed to disclose this to investors, we believe those investors may have a legal claim against the company.”