According to a press release dated March 24, 2008, Possis Medical, Inc, a developer, manufacturer and marketer of pioneering medical devices used in endovascular procedures, announced that the United States Court of Appeals for the Eighth Circuit has affirmed the Federal District Court's dismissal of a shareholder lawsuit that was filed June 5, 2005. The suit had alleged that Possis Medical violated federal securities laws by misrepresenting material information about the Company’s AngioJet® Rheolytic™ Thrombectomy System prior to the August 2004 public disclosure of the results of the Company’s AiMI clinical trial. The United States District Court for the District of Minnesota had previously dismissed with prejudice the consolidated amended complaint in a shareholder class action lawsuit filed against Possis Medical and two of its executive officers, entitled “In re Possis Medical, Inc., Securities Litigation.”
In a press release dated March 25, 2007, Possis Medical, Inc., announced that the dismissal of the lawsuit entitled "In re Possis Securities Litigation" against Possis Medical has been appealed. Plaintiffs in the securities litigation entitled "In re Possis Securities Litigation", which was dismissed with prejudice by the United States District Court for the District of Minnesota in early February, filed on March 3, 2007, a notice of appeal of the trial court's decision with the United States Court of Appeals for the Eight Circuit.
In a press release dated February 5, 2007, Possis Medical, Inc., announced that the United States District Court for Minnesota has dismissed, with prejudice, the consolidated amended complaint in a shareholder class action lawsuit filed against Possis Medical and two of its executive officers, entitled "In re Possis Medical, Inc., Securities Litigation." The dismissed shareholder suit, filed in June 2005, arose from allegations concerning public statements made prior to the August 2004 public disclosure of Possis Medical's AiMI clinical study results. The case consolidated multiple purported class actions and, although no class had yet been certified, the court had appointed lead plaintiffs in August 2005. Possis Medical filed its Motion to Dismiss shortly thereafter and oral arguments were heard in March 2006.
On September 6, 2005, the Court entered the Order consolidating the actions, appointing lead plaintiffs and approving lead plaintiffs’ selection of lead counsel and liaison counsel. On November 4, 2005, a Consolidated Amended Class Action Complaint was filed. The defendants responded by filing a motion to dismiss the Consolidated Amended Class Action Complaint on December 19, 2005.
Several purported shareholder class action lawsuits have been filed against Possis and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated Possis' stock price, inflicting damages on investors. Possis develops, manufactures, and markets medical devices, including the AngioJet System - a non-surgical, minimally invasive catheter system designed to rapidly remove blood clots using a stream of water.
Specifically, the Complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented material adverse facts, including that: (a) the AngioJet System, the Company's key product, was not more effective than existing alternatives, including competing drug therapies, nor did AngioJet reduce significant procedural complications or significantly increase positive benefits such as improved blood flow or other similar effects; (b) the AngioJet could not be expanded as a "technology platform" because AngioJet was not in the first instance effective for routine use in a broad range of heart attack patients to reduce the size of a patient's damaged tissue area; and (c) as a result of the foregoing problems, Possis could not maintain its projected revenue growth or achieve sustained revenue growth targets as high as 35%.
The Complaint further alleges that defendants were motivated to and did conceal the true safety and efficacy of AngioJet, and defendants' ability to expand and develop Possis' AngioJet technology, because it enabled defendants to artificially inflate the price of Possis shares and then allowed defendants and other Company insiders to sell more than 361,730 shares of their privately held Possis stock to the unsuspecting public for proceeds in excess of $7.07 million while in possession of material adverse, non-public information about the Company.
On or around August 24, 2004, it was disclosed that AngioJet failed to demonstrate clinical superiority in the majority of heart attack patients, causing Possis' share price to plummet more than 38%. As a result, the Company lost almost 40% of its market capitalization after Possis shares traded down more than $11.75 per share, to $19.00 per share, as defendants lowered the Company's 2005 earnings and revenue guidance.