According to the law firm press release, the Complaint alleges that throughout the Class Period, Defendants touted the Company's financial strength and future prospects. These statements, however, were materially false and misleading when made because the United States Food and Drug Administration ("FDA") repeatedly warned the Company that its promotional materials contained inappropriate claims regarding the Impella 2.5 catheter and suggested improper off-label uses. Defendants repeatedly assured investors that they had addressed the FDA's concerns and that the matter was resolved.
On November 1, 2012, Abiomed disclosed that the Department of Justice had initiated an investigation "focused on the Company's marketing and labeling of the Impella 2.5." On this news, shares of Abiomed's stock fell from $19.82 per share on October 31, 2012 to close at $13.61 on November 1, 2012.
On February 14, 2013, the Court made a ruling from the bench designating Fire and Police Pension Association of Colorado and the City of Austin Police Retirement System as Lead Plaintiff and Berman DeValerio to serve as lead counsel.
On May 20, 2013, an Amended Complaint was filed against the defendants by the lead plaintiffs.
On April 10, 2014, the Court granted an Order on Defendants’ Motion to Dismiss and submitted an accompanying Memorandum.
On May 9, 2014, the Plaintiffs in the case filed a Notice of Appeal with the United States Court of Appeals for the First Circuit.
On February 6, 2015, the United States Court of Appeals for the First Circuit affirmed the judgment of the district court and costs were awarded to Abiomed.