Advanced Neuromodulation (NASDAQ:ANSI)
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From Sep 2019 to Sep 2024
The Law Firm of Goldman Scarlato & Karon, P.C. Announces the
Filing of a Class Action Lawsuit Against Advanced Neuromodulation Systems Inc.
PHILADELPHIA, March 2 /PRNewswire/ -- Goldman Scarlato & Karon, P.C., a law
firm with offices in Philadelphia, PA and Cleveland, OH, announces that a
lawsuit has been filed in the United States District Court for the Eastern
District of Texas, on behalf of persons who purchased or otherwise acquired
publicly traded securities of Advanced Neuromodulation Systems Inc. ("Advanced
Neuromodulation" or the "Company") (NASDAQ:ANSI) between April 24, 2003 and
February 16, 2005, inclusive, (the "Class Period"). The lawsuit was filed
against Advanced Neuromodulation, Christopher G. Chavez and F. Robert Merrill
III ("Defendants").
If you are a member of this class and wish to view a copy of a complaint and
join this class action, please e-mail us at and request a copy of the
complaint and a plaintiff certification. If you are a member of the Class, you
may move the Court no later than May 2, 2005 to serve as a lead plaintiff for
the Class. Any member of the purported class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to do nothing and
remain an absent class member. However, if you choose to remain an absent
class member, unless and until a class is certified, you are not represented by
counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically, the complaint alleges that Defendants' statements regarding the
Company's performance and financial results were materially false and
misleading because as a part of its marketing strategy, the Company improperly
paid certain physicians a $1,000 incentive for each device implanted in
patients, that the Company's growth was materially driven by improperly paying
physicians to recommend and implant the Company's products in patients, and
that the Company's relationship with its physicians was based upon improper
payments and not growing market acceptance of its products.
On February 17, 2005, before the market opened, Defendants revealed that the
Company had received a subpoena from the Inspector General, Department of
Health and Human Services, requesting documents related to the Company's sales
and marketing, reimbursement, Medicare and Medicaid billing and other business
practices. In addition, the Company announced that revenues in the first
quarter of 2005 could be below expectations. In reaction to these
announcements, shares of Advanced Neuromodulation fell from $37.60 per share on
February 16, 2005 to $29.37 per share on February 17, 2005, representing a
decline of 22%.
If you bought Advanced Neuromodulation securities between April 24, 2003 and
February 16, 2005, inclusive, and would like to obtain information about the
lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.
DATASOURCE: The Law Firm of Goldman Scarlato & Karon, P.C.
CONTACT: Mark S. Goldman, Esq. of The Law Firm of Goldman Scarlato &
Karon, +1-888-753-2796