SAN DIEGO and PLEASANTON, Calif., Jan. 28, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Thoratec Corporation (NASDAQ: THOR) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between April 29, 2010 and November 27, 2013 (the "Class Period").
Thoratec Accused of Failing to Disclose Risks Associated with HeartMate II Left Ventricular Assist Device
According to the complaint, shares of Thoratec shares fell $1.52, to close at $32.83 on April 4, 2012, on news that the company's HeartMate II heart pumps contained a potential deadly defect and were being recalled by the U.S. Food and Drug Administration. The HeartMate II heart pumps are ventricular assist devices, which are Thoratec's primary product. Then, on November 27, 2013, a study released by the New England Journal of Medicine found that the "rate of pump thrombosis related to the use of the HeartMate II has been increasing at our centers and is associated with substantial morbidity and mortality." On this news, shares of Thoratec declined approximately 6.5%, to close at $39.37 per share on November 29, 2013.The complaint alleges that Thoratec made materially false and misleading statements to investors about its HeartMate II Left Ventricular Assist Device. Specifically, the company failed to disclose the substantial risk of pump thrombosis associated with the product, causing numerous fatalities. As a result, the company issued statements throughout the Class Period that were materially false and misleading.