INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP ANNOUNCES SHAREHOLDER LAWSUIT AGAINST THORATEC CORPORATION - THOR
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NEW YORK, NY—(PrimeZone)— August 27, 2004: Murray, Frank & Sailer LLP announces that it filed a complaint in the Northern District of California against Thoratec Corporation ("Thoratec" or the "Company") (Nasadq: THOR) on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Thoratec between April 28, 2004 and June 29, 2004, inclusive (the "Class Period").
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.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Thoratec between April 28, 2004 through June 29, 2004, inclusive, and sustained damages, you may, no later than October 4, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]