NEW YORK, April 5, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cardiovascular Systems Inc. ("Cardiovascular" or the "Company") (NASDAQ: CSII) of the April 12, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased or otherwise acquired Cardiovascular securities between September 12, 2011 and January 21, 2016 (the "Class Period"). The case, Caroline Paradis v. Cardiovascular Systems, Inc. et al., No. 2:16-cv-01011 was filed on February 12, 2016, and has been assigned to Judge Dale S. Fischer and Magistrate Judge Rozella A. Oliver.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and misleading statements about the Company's business prospects and by failing to disclose that Cardiovascular distributed illegal kickbacks to health care providers and engaged in off-label promotion of the Company's medical devices.
Specifically, the lawsuit alleges that during aftermarket hours on May 9, 2014, the Company received a letter from the U.S. Attorney's Office for the Western District of North Carolina stating that it is investigating the Company to determine whether it violated the False Claims Act, resulting in the submission of false claims to federal and state health care programs.
After the announcement, Cardiovascular's share price fell from $29.05 per share on May 9, 2014 to a closing price of $27.43 on May 12, 2014 —a $1.62 or a 5.6% drop.
Then, during aftermarket hours on October 7, 2015, the Company announced lower expected revenue for the 2016 fiscal first quarter due to the continued effects of the sales force transition caused by the receipt of the letter from the U.S. Attorney's Office for the Western District of North Carolina.
After the announcement, Cardiovascular's share price fell from $16.63 per share on October 7, 2015 to a closing price of $13.62 on October 8, 2015—a $3.01 or a 18.1% drop.
During aftermarket hours on January 21, 2016, the Company announced lower expected revenue for the 2016 fiscal second quarter, due to the continued effects of the sales force transition caused by the receipt of the letter from the U.S. Attorney's Office for the Western District of North Carolina.
After the announcement, Cardiovascular's share price fell from $12.46 per share on January 21, 2016 to a closing price of $8.74 on January 22, 2016—a $3.72 or a 29.9% drop.
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If you invested in Cardiovascular securities between September 12, 2011 and January 21, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/CSII. 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 firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Cardiovascular's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that 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 of whether or not to serve as a lead plaintiff.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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