Edwards Lifesciences faces shareholder class action over Sapien TAVI system

September 19, 2013 by Arezu Sarvestani

Medical device company Edwards Lifesciences is the subject of a class action lawsuit accusing the company of lying about its Sapien transcatheter aortic valve implantation system.

Edwards Lifesciences faces shareholder class action

A California law firm announced this week that it's representing shareholders of Edwards Lifesciences (NYSE:EW) in a class action lawsuit accusing the company of withholding information and misleading investors about the market for its Sapien transcatheter aortic valve implantation system.

The lawsuit was spurred by Edwards' revelation on April 23, 2013, that about 20 candidate hospitals had decided to postpone Sapien training and that there was "substantially no backlog of patients awaiting SAPIEN implants," according to the firm of Glancy Binkow & Goldberg LLP. The news send EW shares down 22% by the end of that day.

Sign up to get our free newsletters delivered right to your inbox.

The lawsuit claims that the medical device giant withheld vital information from shareholders, issuing per-share earning guidance that was way off target.

"Defendants knew but concealed from Edwards Lifesciences' shareholders during the Class Period that: adoption of SAPIEN was weaker than the company claimed, due to concerns among physicians over the risks and complexity of the procedure for implanting the valve," according to a statement issued by the law firm. "Edwards Lifesciences' outlook for sales and earnings per share was significantly weaker than the optimistic guidance defendants offered to investors."

Comments

Built on an AdaptiveTheme using Drupal by Michael Knapp  mknapp