According to the complaint, Neovasc is a specialty medical device company that develops, manufactures, and markets cardiovascular products worldwide. The company’s main product is the Tiara, a transcatheter mitral valve device used to treat mitral valve disease. The Tiara, which the company started developing in the second quarter of 2011, can be implanted through minimally invasive surgery to individuals who experience mitral regurgitation as a result of mitral heart valve disease. On June 6, 2014, CardiAQ Valve Technologies, Inc. (“CardiAQ”) filed suit in the United States District Court for the District of Massachusetts against Neovasc and a subsidiary asserting claims for correction of inventorship, breach of contract, breach of implied covenant of good faith and fair dealing, fraud, misappropriation of trade secrets, and unfair and deceptive trade practices.
The complaint alleges that throughout the Class Period, the defendants issued materially false and misleading statements regarding the company’s business, operational and legal practices. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (i) that the company’s Tiara device was developed through unlawful business practices, including the misappropriation of three trade secrets from CardiAQ; (ii) that CardiAQ’s lawsuit against Neovasc indeed had merit as the Company misappropriated trade secrets; and (iii) that, as a result of the above, Defendants’ statements about Neovasc’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
The Class Period commences on January 26, 2015, when the company announced that it had commenced an underwritten public offering of 8,000,000 common shares, consisting of 6,340,000 common shares to be offered by Neovasc and 1,660,000 common shares to be offered by certain directors, officers and employees.
According to the complaint, on May 19, 2016, a jury awarded CardiAQ $70 million in damages after determining that Neovasc had breached contractual provisions and misappropriated three trade secrets. Following this news, Neovasc’s stock price declined 75%, from $1.84 per share on May 19, 2016 to $0.46 per share on May 20, 2016.
If you are a member of the class described above, you may no later than August 5, 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 firstname.lastname@example.org. 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.
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