SOURCE: Bernstein Litowitz Berger & Grossmann LLP

January 22, 2016 20:44 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against HeartWare International, Inc. and Certain of Its Senior Executives

NEW YORK, NY--(Marketwired - Jan 22, 2016) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action on behalf of the St. Paul Teachers' Retirement Fund Association against HeartWare International, Inc. ("HeartWare" or the "Company") (NASDAQ: HTWR) and certain of its senior executives (collectively, "Defendants") in the U.S. District Court for the Southern District of New York. The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in HeartWare common stock between June 10, 2014 and January 11, 2016, inclusive (the "Class Period"). A copy of the Complaint filed in the action, captioned St. Paul Teachers' Retirement Fund Association v. HeartWare International, Inc., No. 15-cv-520 (S.D.N.Y.), is available on BLB&G's website at www.blbglaw.com.

HeartWare is a medical device company that develops and manufactures miniaturized implantable heart pumps. The Complaint alleges that during the Class Period, HeartWare and certain of its senior executives violated provisions of the Exchange Act by making numerous false and misleading statements and omissions of material fact, including in press releases and in statements during conferences and conference calls with analysts and investors. Specifically, the Complaint alleges that after the U.S. Food and Drug Administration ("FDA") issued a Warning Letter identifying numerous manufacturing and other regulatory failures at the Company's sole manufacturing facility, Defendants falsely assured investors that the Company had addressed those problems, and that they therefore posed no risk to the clinical trials or timely approval of MVAD, a pump that HeartWare is presently developing.

The truth concerning the Company's failure to remediate the regulatory failures identified by the FDA and its impact on the viability of MVAD was revealed through a series of disclosures. On September 1, 2015, HeartWare announced a highly dilutive acquisition of Valtech Cardio, Ltd., a manufacturer of medical devices used to treat heart disease. The Complaint alleges that this disclosure revealed significant obstacles to the timely approval of MVAD. On September 9, 2015, HeartWare disclosed that it was halting enrollment in the MVAD trial because of a manufacturing problem with the device. On October 12, 2015, HeartWare disclosed that patients in the MVAD trial had suffered adverse events, and that the trial would be further delayed. And on January 11, 2016, the Company revealed that problems with MVAD had resulted in serious adverse events in nearly half of the patients so far implanted with the device, and that the trial would be delayed indefinitely. In response to each of these disclosures, the price of HeartWare's common stock declined significantly. In total, HeartWare's common stock fell 72% from its Class Period high to close at $26.50 per share on January 12, 2016.

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than 60 days from today. Accordingly, the deadline for filing a motion for appointment as Lead Plaintiff is March 22, 2016. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Michael Blatchley of BLB&G at (212) 554-1281, or via e-mail at michaelb@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Michael Blatchley
    Bernstein Litowitz Berger & Grossmann LLP
    1251 Avenue of Americas, 44th floor
    New York, New York 10020
    Telephone: (212) 554-1281