CSI investors may receive additional information about the case by clicking the link "Join this Class Action" above.
CSI develops and manufactures medical devices for the treatment of peripheral and coronary arterial diseases. The Company’s principal products and major sources of revenue are its peripheral arterial disease (“PAD”) systems, which are catheter-based platforms capable of treating various types of plaque in leg arteries.
The shareholder class action complaint alleges that CSI and certain of its executive officers made a series of false and misleading statements and failed to disclose material adverse facts about the Company’s business and operations. Specifically, the defendants are alleged to have falsely touted CSI’s code of ethics while failing to disclose that the Company relied upon illegal kickbacks, off-label promotions, and other violations of applicable laws and regulations in order to drive sales of its products.
As more fully detailed in the shareholder class action complaint, on July 15, 2013, a former CSI sales manager initiated an action in the United States District Court for the Western District of North Carolina pursuant to the qui tam provisions of the Federal Civil False Claims Act, and alleged that CSI “utilized its sales force to illegally promote the off-label sales and use of its medical devices in order to obtain reimbursement for non-FDA-approved indications and maximize profits through false and fraudulent statements.”
Among other things, the shareholder complaint also details how on May 9, 2014, CSI revealed that it had “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 the Company has violated the False Claims Act, resulting in the submission of false claims to federal and state health care programs, including Medicare and Medicaid.” On this news, the price of CSI’s common stock declined $1.62 per share, or nearly 6%, to close on May 12, 2014 at $27.43 per share.
Finally, on January 21, 2016, CSI announced its second quarter fiscal 2016 financial results, reporting revenue of $41.4 million – below the Company’s expected range of between $42.5 million and $44.0 million. The Company attributed its guidance miss to the “continued effects of the sales force transition.” Following this news, the price of CSI’s common stock fell an additional $3.72 per share, or nearly 30%, to close on January 22, 2016 at $8.74 per share.
If you are a member of the class described above, you may no later than April 12, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com