SAN DIEGO & FRAMINGHAM, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of HeartWare International, Inc. (NASDAQGS: HTWR) violated the Securities Exchange Act of 1934 between June 10, 2014 and January 11, 2016, by making materially false and misleading statements about HeartWare's business prospects. HeartWare, a medical device company, designs, develops, manufactures, and markets miniaturized implantable heart pumps or ventricular assist devices ("VADs") for the treatment of advanced heart failure. The company currently has one commercial product —the HeartWare Ventricular Assist System ("HVAD"), which provides patients with additional blood flow in order to manage congestive heart failure. The company was in the process of developing a new device- the MVAD- based on HVAD technology but less than one-half HVAD's size. According to the complaint, HeartWare officials represented that MVAD would revolutionize the VAD market and be the key driver for HeartWare's future growth.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/heartware-international-inc
HeartWare International Accused of Lying About Its Products
The complaint alleges that on June 2, 2014, the U.S. Food and Drug Administration ("FDA") issued a Warning Letter to HeartWare, identifying several manufacturing and regulatory failures at its Miami Lakes facility in Florida that were connected to reports of death and serious injuries. On June 10, 2014, HeartWare publicly assured investors that the company was addressing its regulatory failures and that those failures posed no risk to timely MVAD approval.
Contrary to HeartWare officials' statements, HeartWare failed to adequately address the issues the FDA identified, which caused an indefinite delay in commencing clinical trials of MVAD. On September 1, 2015, HeartWare announced a highly dilutive acquisition of Valtech Cardio, Ltd., which, according to the complaint, led investors to question HeartWare's confidence in its regulatory compliance and MVAD's commercialization prospects. Then, on September 9, 2015, HeartWare disclosed that it had identified manufacturing problems with the device's controller—the same device component that the FDA had tied to previous deaths and injuries in HVAD users—and was halting enrollment in the MVAD trial. On January 11, 2016, HeartWare confirmed that nearly half of all patients in the MVAD trial had suffered serious adverse events as a result of software issues with MVAD, and that the MVAD trial would be delayed indefinitely. HeartWare stock declined 72% from its class period high to close at $26.50 per share on January 12, 2016.
HeartWare International Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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