Investors Sue Heart-Device Co. Over DOJ Mislabeling Fallout

Law360, New York (November 16, 2012, 7:27 PM EST) -- A pair of Abiomed Inc. investors sued the cardiac-device maker in Massachusetts federal court Friday, claiming the company lied about a U.S. Food and Drug Administration investigation into ad campaigns for one of its products, which artificially inflated stock values before they plummeted as word of the probe got out.

Plaintiffs Karse and Arlene Simon claim they and other investors lost money on their Abiomed investments once news broke this month that the U.S. Department of Justice was investigating the company's marketing of its flagship product,...
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