Business

Abiomed, Inc. (NASDAQ: ABMD) Investor Lawsuit alleges False and Misleading Statements

Press Release

An investor, who purchased shares of Abiomed, Inc. (NASDAQ: ABMD), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Abiomed, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Abiomed, Inc. (NASDAQ: ABMD) have certain options and for certain investors are short and strict deadlines running. Deadline: October 7, 2019. NASDAQ: ABMD investors should contact the Shareholders Foundation at [email protected] or call +1(858) 779 – 1554.

Danvers, MA based Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patient.

On August 1, 2019, pre Abiomed, Inc. announced its financial and operating results for the first quarter of fiscal year 2020. Among other results, Abiomed, Inc. reported “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. Commenting on the Company’s surprising financial result disappointment, the Company’s Chairman, President, and CEO, Defendant Michael R. Minogue (“Minogue”), revealed that the Company’s “new training programs, organizational changes in distribution, and [] external initiatives… will require time to drive more growth in the future”.
Abiomed, Inc. 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 roughly $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 Defendant Minogue’s prior public statements, titled: “This Medtech’s CEO Promised To ‘Correct The Course’ — That Didn’t Happen”.

Shares of Abiomed, Inc. (NASDAQ: ABMD) declined from $455.40 per share in September 2018 to as low as $181.02 per share on August 8, 2019

The plaintiff claims that between January 31, 2019 through July 31, 2019, the defendants made false and/or misleading statements and/or failed to disclose that ABIOMED’s revenue growth was in decline, that the Company did not have a sufficient plan in place to stem its declining revenue growth, that the Company was unlikely to restore its revenue growth over the next several fiscal quarters, that 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 that as a result, the Company’s public statements were materially false and misleading at all relevant times.

Those who purchased shares of Abiomed, Inc. (NASDAQ: ABMD) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
[email protected]

About:
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.