Spectranetics Replaces President and CEO John G. Schulte with Chairman
Emile J. Geisenheimer.
SEATTLE, Oct. 29 /PRNewswire/ -- Hagens Berman Sobol Shapiro filed a class-action lawsuit on behalf of those who purchased Spectranetics Company stock (Nasdaq: SPNC), claiming the company, its chief executive officer and chief financial officer violated U.S. securities laws through illegal marketing practices and false statements about the company's financial health. If you are interested in serving as lead plaintiff, the deadline for filing is Nov. 24, 2008.
Last week, Spectranetics announced the appointment of chairman Emile J. Geisenheimer to president and CEO, ousting John G. Schulte, a named defendant in the class action suit. Geisenheimer issued a statement that he has an "understanding of the challenges before us, and the board of directors and I are confident that we are taking an important step towards putting these challenges behind us so that we can build a stronger future for our company."
The class action was filed after a former employee filed suit against the company claiming Spectranetics fired him after he informed senior management of potentially illegal marketing practices with some of the company's products.
According to court documents, shortly thereafter, the Denver office of the Securities and Exchange Commission (SEC) began its own investigation into the company sparking further speculation about the company and its practices.
"Investors across the country are on shaky ground these days," said Reed Kathrein, lead attorney and partner at Hagens Berman Sobol Shapiro. "Spectranetics, like many companies, fell prey to a bad market and unfortunately decided to mislead investors to try and turn things around."
The lawsuit seeks to represent anyone who purchased or acquired company stock between April 19, 2007 and Sept. 4, 2008.
The lawsuit alleges company executives issued false and misleading statements concerning operations and finances, which caused company stock to trade at an artificially inflated price. Defendants knowingly shared misinformation and failed to communicate accurate reports, the complaint states.
The shock came to investors on Sept. 4, 2008 when reports surfaced that federal officials raided the company. Almost immediately, NASDAQ halted trading of Spectranetics stock.
According to court documents, Spectranetics issued a press release revealing more information about the search warrants, disclosing the company was jointly served by the FDA and U.S. Immigration and Customs Enforcement regarding the promotion, use, testing, marketing and sales of certain Spectranetics products. The warrants also addressed payments made to medical personnel.
The suit claims the effect on company stock was significant as it fell 47 percent to $4.73 per share. Today the company stock stands at $2.74, after trading at a high of $16.00 per share in December 2007.
The allegations against Spectranetics include: failing to notify investors and the public that the company lacked effective regulatory compliance controls; illegally and extensively marketing its laser and catheters for uses not approved by the FDA; failing to report to the FDA that tests found its laser caused significant damage to stents when used in clinical trials; illegally testing several products without FDA approval; the company's lack of effective internal controls and the material inflation of the company's financial results.
The complaint alleges the defendants, which include The Spectranetics Corporation, John G. Schulte, president and CEO, and Guy A. Childs, vice president and CFO, violated several sections of the 1934 Securities Exchange Act.
If you invested in Spectranetics stock during the outlined class period, you may be eligible to join this suit and move to be a lead plaintiff. The deadline for moving is Nov. 24, 2008. You can contact plaintiff's counsel, Reed Kathrein at (510) 725-3000, or via e-mail at firstname.lastname@example.org.
More information on this lawsuit is available at http://www.hbsslaw.com/spnc.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in
Chicago, Cambridge, Los Angeles, Phoenix, San Francisco and New York. Since
1993, it has developed a nationally recognized practice in class-action and
complex litigation. Among recent successes, HBSS has negotiated a $300
million settlement in the DRAM memory antitrust litigation, one of the
largest anti-trust settlements in history; a $340 million recovery on
behalf of Enron employees; a $150 million settlement involving charges of
illegally inflated charges for the drug Lupron, and served as co-counsel on
the Visa/Mastercard litigation which resulted in a $3 billion settlement,
the largest anti-trust settlement to date. HBSS served as counsel in an
$850 million Washington Public Power Supply settlement and represented
Washington and 12 other states against the tobacco industry that resulted
in the largest settlement in history. For a complete listing of HBSS cases,
Reed Kathrein (510) 725-3000 Mark Firmani (206) 443-9357
Hagens Berman Sobol Shapiro Firmani + Associates Inc.
|SOURCE Hagens Berman Sobol Shapiro|
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