Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of a class consisting of all purchasers of the securities of Abiomed, Inc. (“Abiomed” or the “Company”) (NASDAQ:ABMD) between August 5, 2011 and October 31, 2012, inclusive (the “Class Period”).
Abiomed is a provider of medical devices in circulatory support and offers a continuum of care in heart recovery for acute heart failure patients. The Company’s Impella 2.5 catheter is a percutaneous micro heart pump with an integrated motor and sensors, designed primarily for use by interventional cardiologists to support patients in the cardiac catheterization lab who may require assistance to maintain their circulation.
The Complaint alleges that throughout the Class Period the defendants made materially false and misleading statements regarding the Company’s business, operations and financial prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company was improperly marketing and/or labeling its Impella 2.5 system; (2) the Company’s financial results would be materially impacted if the Company were either forced to stop its improper conduct or unable to continue its improper conduct; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On November 1, 2012, prior to the opening of the markets, Abiomed disclosed that on October 26, 2012 the Company was informed that the United States Attorney’s Office for the District of Columbia was conducting an investigation into Abiomed’s marketing and labeling of its Impella 2.5 system, and that on October, 31, 2012 Abiomed accepted service of a Health Insurance Portability and Accountability Act administrative subpoena related to this investigation. As a result of this news, shares of Abiomed declined $6.31 per share, or 31.33%, to close on November 1, 2012 at $13.61, on heavy trading volume.