Hagens Berman Investigates Abiomed Inc., Encourages Whistleblower Assistance
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.”
On Nov. 1, 2012, following Abiomed's disclosure of the DOJ investigation, the company's stock price fell by more than 30 percent, closing at $6.21.
Investors who purchased Abiomed stock prior to the company's disclosure are encouraged to contact Hagens Berman to discuss legal representation. Investors can contact Mr. Kathrein by calling 510-725-3030 or by emailing ABMD@Hbsslaw.com.
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.
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