LITTLE ROCK, Ark., July 18, 2005 (PRIMEZONE) -- Emerson Poynter LLP (www.emersonpoynter.com) a national law firm with offices in Houston, Little Rock, and Seattle, announced today that the deadline for shareholders to move for appointment as Lead Plaintiff is fast approaching in the class action lawsuit filed on behalf of purchasers of Possis Medical, Inc. ("Possis") (Nasdaq:POSS). If you purchased or otherwise acquired common stock of Possis during the period between September 25, 2002 and August 24, 2004 (the "Class Period"), you have until August 2, 2005 to move the court for appointment.
The complaint, filed in the United States District Court for the District of Minnesota, charges Possis and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Possis engages in the development, manufacture, and marketing of medical devices. The complaint further alleges that during the Class Period, defendants made false and misleading statements regarding the Company's business and prospects, including about the capabilities and safety of its primary product, the AngioJet system. As a result of defendants' false statements, Possis stock traded at inflated levels during the Class Period, whereby the Company's top officers and directors arranged for the sale of more than $1.2 million worth of Company shares.
Then, in August 2004, Possis reported its results from its 480 patient, post-marketing study called AiMI. The study used the Company's AngioJet catheter for removing thrombus prior to balloon angioplasty and stinting in acute myocardial infarctions. The primary endpoint of the trial was the final infarct size at 14-28 days. The results of the trial not only showed that the primary endpoint was not achieved, but that the control arm had statistically significant, smaller infarcts than the AngioJet arm. These revelations sent the Company's shares into a free-fall. The complaint alleges that Possis had led investors to believe that the AiMI study would show that there was a clear benefit from prophylactic use in all "heart attack" patients and this would convince the medical community that this should become the standard of care in such cases.
Once this news was released, Possis stock collapsed 40 percent from $30.76 to $18.53 per share on volume of 14.8 million shares. According to the complaint, the true facts, which were concealed from the investing public during the Class Period, were as follows: (a) defendants' claims relating to the utility of the AngioJet catheter were materially false, as the study cited as a basis for these claims was, like defendants' projections, manipulated and/or simply manufactured, since the study proved what defendants already knew -- there was no statistically significant difference; (b) defendants' study was manipulated and/or manufactured, as the August 2004 revelations suggest that the control group was different at baseline than the AngioJet arm; (c) the AngioJet system was not more effective than existing alternatives, nor did the AngioJet system reduce significant procedural complications or significantly increase positive benefits such as improved blood flow or other similar effects; and (d) the Company's clarifications relating to the benefits of the AngioJet issued during the Class Period were not based on fact or scientifically based assumptions, but rather on defendants' own fabricated "guess work."
If you purchased or otherwise acquired the common securities during the Class Period (September 25, 2002 -- August 24, 2004) you may, no later than August 2, 2005 move the Court to appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the Lead Plaintiffs, you are encouraged to contact us via email (epllp@emersonpoynter.com) or via telephone as noted below.
Emerson Poynter LLP has substantial experience representing shareholders and investors in complex class action securities, consumer, and retirement plan litigation all over the country. A complete firm resume is posted on our website (www.emersonpoynter.com/resources/firmresume.pdf).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.