Robbins Arroyo LLP Is Investigating the Officers and Directors of Cardiovascular Systems, Inc. (CSII) on Behalf of Shareholders
SAN DIEGO and ST. PAUL, Minn, Sept. 25, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Cardiovascular Systems, Inc. (NASDAQGS: CSII) violated the False Claims Act by illegally paying doctors to use the company's products. Cardiovascular Systems, a medical technology company, develops, manufactures, and markets devices to treat vascular diseases in the United States.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/cardiovascular-systems-inc
Cardiovascular Systems Engages in Fraudulent Marketing Schemes
On May 9, 2015, Cardiovascular Systems disclosed that it was being investigated by the U.S. Attorney's Office for the Western District of North Carolina for possible violations of the False Claims Act.
On July 8, 2015, the company further disclosed that a whistleblower lawsuit filed in 2013 had been unsealed. The lawsuit, brought by a former sales manager of the company, alleges that Cardiovascular Systems engaged in a fraudulent marketing scheme to maximize profits through illegal kickbacks, and schemed to drive up sales through off-label promotions and violations of federal laws and regulations. The company allegedly sent doctors on all-expense paid trips for training seminars and then told them to use the company's devices on their next five or 10 cases. Additionally, Cardiovascular Systems allegedly sent doctors free products to induce them to purchase other products and provided information on how they could maximize their returns using unnecessary medical procedures. The complaint further alleges that the company made "sham" payments to doctors for speaking engagements as a reward or inducement for using the device frequently.
In light of this news, Robbins Arroyo LLP's investigation focuses on whether Cardiovascular Systems and/or its officers breached their fiduciary duties to shareholders.
Cardiovascular Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, Ca 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP
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