NEW YORK, June 8, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the District of Minnesota on behalf of shareholders who purchased or otherwise acquired the securities of Possis Medical, Inc. ("Possis" or the "Company") (Nasdaq:POSS) between September 24, 2002 and August 24, 2004, inclusive (the "Class Period").
The complaint alleges that during the Class Period Possis and certain of the Company's executive officers issued materially false and misleading financial statements to the investing public regarding its financial outlook and the prospects for its key product, the AngioJet System, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder.
Possis Medical, Inc. engages in the development, manufacture, and marketing of medical devices. During the Class Period, defendants made numerous positive statements regarding the Company's financial performance and prospects. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated Possis' stock price, inflicting damages on investors. The Complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented material adverse facts, including that: (1) the AngioJet System, the Company's key product, was not more effective than existing alternatives, including competing drug therapies, nor did AngioJet reduce significant procedural complications or significantly increase positive benefits such as improved blood flow or other similar effects; (2) the AngioJet could not be expanded as a "technology platform" because AngioJet was not in the first instance effective for routine use in a broad range of heart attack patients to reduce the size of a patient's damaged tissue area; and (3) as a result of the foregoing problems, Possis could not maintain its projected revenue growth or achieve sustained revenue growth targets as high as 35%.
Additionally, the Complaint alleges that defendants misled investors concerning the safety, efficacy and prospects of the AngioJet because it enabled defendants to artificially inflate the price of Possis shares and then allowed defendants and other Company insiders to sell more than 361,730 shares of their privately held Possis stock to the unsuspecting public for proceeds in excess of $7.07 million while in possession of material adverse, non-public information about the Company.
On August 24, 2004, it was disclosed that AngioJet failed to demonstrate clinical superiority in the majority of heart attack patients, causing Possis' share price to plummet more than 38%. As a result, the Company lost almost 40% of its market capitalization after Possis shares traded down more than $11.75 per share, to $19.00 per share, as defendants lowered the Company's 2005 earnings and revenue guidance.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Possis securities on any world exchange between September 24, 2002 and August 24, 2004, and sustained damages, you may, no later than August 2, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca