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 - EconoTimes)
NEW YORK, Feb. 19, 2016 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Cardiovascular Systems, Inc. (“Cardiovascular Systems” or the “Company”) (Nasdaq:CSII) in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased Cardiovascular Systems securities between September 12, 2011 and January 21, 2016, inclusive (the “Class Period”). 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 “Exchange Act”).
The Complaint alleges that Defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period. According to the Complaint, on January 21, 2016, the Company disclosed during aftermarket hours that it expects revenue from its 2016 fiscal second quarter to be $41.4 million, a 4% decrease from the second quarter of fiscal 2015, and 3% below the guidance range due to the continued effects of the sales force transition. Similarly, like the financial results disclosed on October 7, 2015, the Company reported disappointing financial results due to the continued reformation of its sales force, which was a materialization of the Company’s receipt of the 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 the Company has violated the False Claims Act.
On this news, the market price of the Company’s common stock dropped almost 30%, closing at $8.74 per share on January 22, 2016, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than April 12, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
