LOS ANGELES, Aug. 23, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Thoratec Corporation ("Thoratec" or the "Company")(Nasdaq:THOR) between April 28, 2004 and June 29, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Thoratec and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Thoratec's operations and prospects artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges defendants knew, but concealed from the investing public, adverse facts including: (a) the true market for "Destination Therapy," Throratec's flagship treatment option for end-stage heart failure, was far less than claimed; (b) less than 75 hospital centers have been designated Medicare-approved for Destination Therapy, though defendants claimed there were approximately 900 qualified centers in the U.S.; (c) Medicare had rigid, preset reimbursement guidelines and schedules for Destination Therapy that could only translate into a serious negative impact on Thoratec's FY 2004 sales projections for the HeartMate ventricular assist device; (d) Cardiothorasic surgeons, concerned about HeartMate's reliability in long-term settings, were rejecting and/or not accepting the device for Destination Therapy patients; (e) demand for Destination Therapy implants was not growing at the rate claimed; (f) the Company's Destination Therapy implant estimate for FY2004 was grossly overstated and internally projected to be a fraction of the estimate; (g) Thoratec's FY2004 revenue projections of $190-$200 million were overstated by tens of millions; (h) reimbursement charges were delaying implants, and the Company knew that significant expansion of existing implant programs was delayed until the expected October 1, 2004, availability of a significant increase in certain reimbursement rates; (i) HeartMate implant sales would be depressed until Q4 2004, and the Company's Q1 2004 earnings shortfall would not be made up until Q1 2005, at best.
As a result of defendants' false statements, Thoratec's stock price traded at artificially inflated levels during the Class Period, increasing to $14.55 on May 24, 2004 and $14.84 on June 8, 2004, whereby the Company's top officers and directors sold more than $143.7 million of corporate notes.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than October 4, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.