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AtriCure, Inc. may have misled investors by including in its financial statements revenues obtained for non-FDA approved uses of AtriCure's cardiac surgical ablation systems.
Investigation Source (Case #08-cv-00867)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
- Drug Or Medical Device Problem
Product or Service
- Investments
Injury Type
- Monetary Loss
Investigation Details
This is a securities class action lawsuit against AtriCure, Inc.
AtriCure is a medical device company engaged in the development, manufacture and sale of cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue.
ArtiCure, allegedly, inflated AtriCure's securities prices by improperly promoting its products to physicians and improperly causing the filing of false claims for reimbursement.
On October 31, 2008, AtriCure shocked investors when AtriCure revealed that it had received a letter from the U.S. Department of Justice - Civil Division (the "DOJ") informing AtriCure that the DOJ was conducting an investigation for potential False Claims Act and common law violations relating to AtriCure's surgical ablation devices. AtriCure further disclosed that, specifically the DOJ was investigating AtriCure's marketing practices utilized in connection with AtriCure's surgical ablation system to treat atrial fibrillation, a specific use outside the Federal Food and Drug Administration's 510(k) clearance. Moreover, AtriCure revealed that the DOJ was investigating whether AtriCure instructed hospitals to bill Medicare for surgical ablation using incorrect billing codes.
As a result of this news, AtriCure's shares declined $2.53 per share, or 39.41 percent, to close on November 3, 2008, at $3.89 per share, on unusually heavy trading volume.
AtriCure is a medical device company engaged in the development, manufacture and sale of cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue.
ArtiCure, allegedly, inflated AtriCure's securities prices by improperly promoting its products to physicians and improperly causing the filing of false claims for reimbursement.
On October 31, 2008, AtriCure shocked investors when AtriCure revealed that it had received a letter from the U.S. Department of Justice - Civil Division (the "DOJ") informing AtriCure that the DOJ was conducting an investigation for potential False Claims Act and common law violations relating to AtriCure's surgical ablation devices. AtriCure further disclosed that, specifically the DOJ was investigating AtriCure's marketing practices utilized in connection with AtriCure's surgical ablation system to treat atrial fibrillation, a specific use outside the Federal Food and Drug Administration's 510(k) clearance. Moreover, AtriCure revealed that the DOJ was investigating whether AtriCure instructed hospitals to bill Medicare for surgical ablation using incorrect billing codes.
As a result of this news, AtriCure's shares declined $2.53 per share, or 39.41 percent, to close on November 3, 2008, at $3.89 per share, on unusually heavy trading volume.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| AtriCure, Inc. (ATRC) | AtriCure, Inc. is a medical device company with a focus in cardiac surgical ablation systems. |