An investigation on behalf of current long-term investors in shares of Cardiovascular Systems Inc (NASDAQ:CSII) shares was announced over potential breaches of fiduciary duties by certain officers and directors at Cardiovascular Systems Inc.
Shares of Cardiovascular Systems Inc (NASDAQ:CSII) declined from over $40 per share in April 2015 to as low as $13.30 per share on October 27, 2015.
Investors who purchased shares of Cardiovascular Systems Inc (NASDAQ:CSII) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm focuses on whether certain statements regarding Cardiovascular System’s business, its prospects and its operations were materially false and misleading at the time they were made. More specifically, the investigation by a law firm concerns whether certain Cardiovascular Systems officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
On May 9, 2014, Cardiovascular Systems Inc disclosed that it had received a letter on May 8, 2014 from the U.S. Attorney’s Office for the Western District of North Carolina stating that the Company is being investigated for possible violations of the False Claims Act , resulting in the submission of false claims to federal and state health care programs, including Medicare and Medicaid.
On July 8, 2015, Cardiovascular Systems Inc disclosed that a whistleblower lawsuit filed in 2013 had been unsealed. The lawsuit, brought by a former sales manager of Cardiovascular Systems Inc, alleged that Cardiovascular Systems Inc engaged in a fraudulent marketing scheme to maximize profits through illegal kickbacks, off-label promotion, and violations of federal laws and regulations. The lawsuit alleges several schemes to drive up sales, including “kickbacks” in which doctors were sent on all-expense-paid trips for training seminars in fancy settings and then told to use Cardiovascular Systems Inc devices on their next five or ten cases.
On November 3, 2015, NASDAQ:CSII shares closed at $15.53 per share.
Those who purchased shares of Cardiovascular Systems Inc have certain options and should contact the Shareholders Foundation.
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