SAN DIEGO & DANVERS, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Abiomed, Inc. (NASDAQ: ABMD) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between January 31, 2019 and July 31, 2019. Abiomed engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart.
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Abiomed Accused of Misleading Investors
According to the complaint, in January 2019, Abiomed announced its third quarter fiscal 2019 results, touting a 30% increase in revenue from the same quarter in fiscal 2018 and revealing a slight decrease in revenue growth from its previous quarter results. In May 2019, Abiomed announced its fourth quarter 2019 results, and although it demonstrated a 19% increase in revenue compared to the same period in fiscal 2018, Abiomed experienced another overall decrease in revenue growth from the previous quarter. In response to its declining growth, Abiomed assured investors that it devised a plan to remediate its negative trend and increased its fiscal year 2020 guidance to a range of $900 million to $945 million. Despite optimistic projections, these assurances were materially false as Abiomed's plan was not sufficient to remedy its declining revenue growth. As a result of its plan's shortcomings, on August 1, 2019, Abiomed announced another significant decrease in revenue growth and was therefore forced to reduce its fiscal 2020 guidance by almost $22 million. On this news, the stock price fell $73.69 per share, or 26.45% to close at $204.87, and continues to decline.
Abiomed, Inc. (ABMD) Shareholders Have Legal Options
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