Hagens Berman Continues Abiomed Investigation into Possible Securities Law Violations on Behalf of Investors
Investors and Witnesses with knowledge invited to contact firm
SAN FRANCISCO--(BUSINESS WIRE)-- Hagens Berman, an investor-rights law firm, is continuing to investigate Abiomed Inc. (NAS: ABMD) regarding possible securities law violations following the company's disclosure of a Department of Justice (DOJ) 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 after November 3, 2011, and before the company disclosed the probe on November 1, 2012.
Investors who purchased or otherwise acquired Abiomed stock prior to the company's disclosure are encouraged to contact Hagens Berman to discuss legal representation. Investors can contact Hagens Berman Partner Reed R. Kathrein, who is leading the firm's investigation, by calling (510) 725-3000 or by emailing ABMD@Hbsslaw.com.
Following the disclosure of the DOJ probe, Abiomed stock fell more than 30 percent on Nov. 1, 2012. The stock continues to trade more than 25 percent below its Oct. 31, 2012 high of nearly $20.00.
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 DOJ investigation into marketing of the product. 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. In November 2011, the company told analysts that the issues in the warning letter were resolved.
"We agree with analysts that the DOJ's probe had a serious adverse impact on Abiomed's stock price," said Mr. Kathrein. "We are trying to determine if the company is marketing its Impella system outside the bounds of the officially-sanctioned uses authorized by the Food and Drug Administration, and therefore, if investors may have a legal claim against the company."
Based on information to date, Hagens Berman attorneys believe that Abiomed may have run into trouble by continuing to make comparative representations using the terminated Protect II trials. Abiomed reportedly pulled all of its marketing materials off its website and from its field representatives in August. Copies of these pulled materials would be helpful in advancing the firm's investigation. Destruction of evidence, including emails and marketing/presentation materials by a company or its employees to impede known investigations, has severe consequences under both criminal and civil laws.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
More information about this investigation is available at http://hb-securities.com/investigations/Abiomed.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Firmani + Associates
Mark Firmani, 206-443-9357
KEYWORDS: United States North America California
The article Hagens Berman Continues Abiomed Investigation into Possible Securities Law Violations on Behalf of Investors originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.