Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Cardiovascular Systems, Inc. (CSII)
February 19 2016 - 10:00PM
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 tjmckenna@gme-law.com or
gegleston@gme-law.com.
Please visit our website at
http://www.gme-law.com for more information about the firm.
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