NEW YORK, Aug. 8, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Abiomed, Inc. ("Abiomed" or the "Company")(ABMD) of the October 7, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Abiomed stock or options between January 31, 2019 and July 31, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ABMD. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Abiomed securities between January 31, 2019 and July 31, 2019 (the "Class Period"). The case, Villare v. Abiomed, Inc. et al., No. 19-cv-07319 was filed on August 6, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that (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, the Company issued a press release announcing its financial and operating results for the first quarter of fiscal year 2020. Among other results, the press release 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. Commenting on the Company's surprising financial result disappointment, the Company's Chairman, President, and CEO, Michael R. 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."
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 roughly $22 million short of market expectations.
On this news, Abiomed's share price fell from $278.56 per share on July 31, 2019 to a closing price of $204.87 on August 1, 2019: a $73.69 or a 26.54% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Abiomed's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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