DALLAS, March 8, 2005 (PRIMEZONE) -- The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the Eastern District of Texas on behalf of purchasers of Advanced Neuromodulation Systems, Inc. (Nasdaq:ANSI) ("Advanced Neuromodulation Systems" or the "Company") securities during the period between April 24, 2003 and February 16, 2005, inclusive (the "Class Period").
The Complaint alleges that Advanced Neuromodulation Systems violated federal securities laws by issuing false or misleading information and that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them. Specifically, the Complaint alleges: (a) as a part of its marketing strategy, the Company improperly paid physicians $1,000 for each device implanted in patients; (b) the Company's growth was materially driven by improperly paying physicians to recommend and implant the Company's products in patients; and (c) the Company's growth was contingent upon improper and unethical practices that were inherently unsustainable, and not the Company's growing acceptance of the merits of its products.
Before the market opened for trading on February 17, 2004, it was revealed that the Company had received a subpoena from the Inspector General, Department of Health and Human Services, "requesting documents relating to the Company's sales and marketing reimbursement, Medicare and Medicaid billing, and certain other business practices." The Company also announced that revenues in the first quarter of 2005 could fall below previous expectations. The Company's shares plummeted to this news and fell to $29.37, down 22% from a previous closing price at $37.60.
If you acquired the securities of Advanced Neuromodulation Systems, Inc. during the Class Period and meet certain legal requirements, you may, no later than May 2, 2005, move for appointment as lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online (http://www.securitiesactions.com). Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.