NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against ABIOMED, Inc. (“ABIOMED” or the “Company”) (NASDAQ: ABMD), and certain other defendants, related to alleged violations of federal securities laws. If you purchased ABIOMED stock between January 31, 2019 through July 31, 2019, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information. The lead plaintiff deadline is October 7, 2019.
ABIOMED is a provider of temporary mechanical circulatory support devices.
The lawsuit alleges that Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically: (i) ABIOMED’s revenue growth was in decline; (ii) the Company did not have a sufficient plan in place to stem its declining revenue growth; (iii) the Company was unlikely to restore its revenue growth over the next several fiscal quarters; (iv) consequently, ABIOMED was reasonably likely to revise its full-year 2020 guidance in a way that would fall short of the Company’s prior projections and market expectations; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 1, 2019, pre-market, Defendants announced ABIOMED’s financial results for the first quarter of fiscal year 2020. Among other results, Defendants disclosed ABIOMED’s third consecutive quarter of slowing revenue growth, reporting “first-quarter fiscal 2020 revenue of $207.7 million, an increase of 15.4% compared to revenue of $180.0 million for the same period of fiscal 2019”. This represented a significant decrease in revenue growth from 2Q 2019. The Company also slashed its previously issued full-year 2020 guidance from total revenues in the range of $900-945 million to total revenues in the range of $885-925 million, which fell approximately $22 million short of market expectations.
Following the Company’s disclosure of its 1Q 2020 financial performance and revised guidance, Investor’s Business Daily published an article raising concern with prior public statements made by the Company’s CEO, titled: “This Medtech’s CEO Promised To ‘Correct The Course’ — That Didn’t Happen”.
On this news, ABIOMED’s stock price fell $73.69 per share – over 26% – to close at $204.87 per share on August 1, 2019.
What You Can Do
If you purchased ABIOMED stock between January 31, 2019 through July 31, 2019, inclusive, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.