NEW YORK, Oct. 04, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Abiomed, Inc. (“Abiomed” or the Company”) (NASDAQ: ABMD) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Abiomed securities between January 31, 2019 through July 31, 2019, both dates inclusive. Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/abmd.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) ABIOMED’s revenue growth was in decline; (2) the Company did not have a sufficient plan in place to stem its declining revenue growth; (3) the Company was unlikely to restore its revenue growth over the next several fiscal quarters; (4) 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 (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 1, 2019, pre-market, Defendants issued a press release announcing ABIOMED’s financial and operating results for the first quarter of fiscal year 2020 (the “1Q 2020 Press Release”). Among other results, the 1Q 2020 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, 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”.
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.
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”.
On this news, ABIOMED’s stock price fell $73.69 per share, or 26.45%, to close at $204.87 per share on August 1, 2019.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/abmd or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Abiomed you have until October 7, 2019 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org