NEW YORK, Nov. 28, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of a class (the "Class") of purchasers of Abiomed, Inc. ("Abiomed" or the "Company") (NASDAQ: ABMD) common stock between August 5, 2011 and October 31, 2012, inclusive (the "Class Period").
Abiomed is a purported pioneer in healthcare technology and innovation and is famous for the world's first total replacement heart and the world's smallest heart pump. One of the Company's chief products is the Impella 2.5 pump, which is designed to provide short-term circulatory support for heart patients.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding Abiomed's business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants failed to resolve issues stemming from the Company's promotional and marketing materials for the Impella 2.5. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.According to the Complaint, Abiomed received letters from the United States Food and Drug Administration ("FDA") in 2010, 2011 and 2012, informing it that the Company was marketing the Impella 2.5 in ways that were not compliant with FDA regulations. While the Company did not disclose the 2010 letter to investors, it misled investors regarding the 2011 and 2012 letters by stating that the Company was cooperating with the FDA to address those issues. On November 1, 2012, Abiomed disclosed that the United States Department of Justice had begun an investigation "focused on the Company's marketing and labeling of the Impella 2.5." Thus, it became apparent to investors that Abiomed had not resolved the outstanding issues addressed by the FDA. On this news, shares in Abiomed declined 31% on tremendous volume. Plaintiffs seek to recover damages on behalf of all Class members who invested in Abiomed common stock during the Class Period. If you invested in Abiomed common stock during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than January 15, 2013. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.