HARTFORD, Conn., Aug. 10, 2004 Legal news, law news, law firm news & research at LAWFUEL The law firm of Schatz & Nobel,
P.C., which has significant experience representing investors in prosecuting
claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Northern
District of California on behalf of all persons who purchased the publicly
traded securities of Thoratec Corporation (Nasdaq: THOR) (“Thoratec”) between
April 28, 2004 and June 29, 2004, inclusive (the “Class Period”).
The Complaint alleges that Thoratec and certain of its officers and
directors issued materially false statements concerning the Company’s business
condition. Specifically, Thoratec failed to disclose and misrepresented the
following material adverse facts: (i) Thoratec significantly underestimated
the time and the resources necessary to develop a stable market for its much
touted Destination Therapy; (ii) Thoratec exaggerated the ultimate size of the
market for the Destination Therapy, while underplaying the risk presented by
competitive products and alternative therapies; (iii) Thoratec ignored the
reluctance of the medical community to treat non-critical patients with the
product, in order to take advantage of the higher reimbursement levels
available from Medicare beginning October 1, 2004; and (iv) that as a
consequence of the foregoing, defendants lacked a reasonable basis for their
positive statements about Thoratec’s growth and progress.
On June 29, 2004, Thoratec provided an update on its business activities
and outlook for the balance of 2004. The company said that it expected total
Destination Therapy implants for 2004 will be approximately 200. Thoratec said
that it expected revenues for all of 2004 will be approximately $175-$180
million, with taxed cash earnings per share in the range of $0.23-$0.26. These
numbers were well below expectations. On this news, shares of Thoratec fell
$3.69 per share or 25.52%, on June 30, 2004, to close at $10.74 per share.
If you are a member of the class, you may, no later than October 4, 2004
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any recovery is
not affected by the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s).
For more information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at
sn06106@aol.com. To view a copy of the lawsuit initiating the class action,
or for more information about class action cases and Schatz & Nobel, please
visit our website: http://www.snlaw.net.
Web Site: http://www.snlaw.net
