Abiomed (NSDQ:ABMD) said it struck a deal with federal prosecutors to extend the tolling agreement on a probe of its marketing of its flagship Impella heart pump.
The new agreement extends the statute of limitations on any alleged offenses until Feb. 2, 2015, Abiomed said in a regulatory filing.
In October 2012, the U.S. Attorney’s Office for the District of Columbia opened an investigation into Abiomed’s marketing & labeling of the Impella 2.5 implantable heart pump. Abiomed’s prior tolling agreement was good through June 2; the extension deal was struck May 27, according to the filing.
"The investigation is ongoing; however, the company is unable to predict the ultimate outcome or determine whether a liability has been incurred or make an estimate of the reasonably possible liability, if any, that could result from any unfavorable outcome associated with this inquiry," Abiomed said.
CFO Robert Bowen told analysts during a conference call last month that it’s hard to predict the legal expenses stemming from the probe.
"We admit difficulty in forecasting legal fees associated with the DOJ investigation. We now expect total year legal expense levels to be in the $3.5 million to $4 million range which is $1.5 million to $2 million higher than I noted on the previous earnings call," Bowen said.
