HARTFORD, Conn., Dec. 14, 2006 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of AtriCure, Inc. ("AtriCure" or the "Company") (Nasdaq:ATRC) pursuant and/or traceable to the Company's initial public offering (the "IPO" or the "Offering") on or about August 4, 2005 through February 16, 2006, (the "Class Period").
The Complaint alleges that AtriCure, a medical device company that engages in the development, manufacture, and sale of surgical devices designed to create precise lesions, or scars, in cardiac and soft tissues, and certain of its officers and directors violated federal securities laws. The complaint alleges that the Registration Statement and Prospectus issued in connection with the Company's IPO contained inaccurate statements of material fact because they failed to disclose that the Cleveland Clinic, where a significant portion of procedures that used the Company's products were being performed, was an investor in the Company and that doctors from the Cleveland Clinic had been paid consultants to the Company.
On February 16, 2006, AtriCure issued a press release announcing its financial results for the fourth quarter of 2005 and the fiscal year ended December 31, 2005 and disclosed, among other things, that the Company was experiencing a "negative impact" on its business due to the revelations concerning the Cleveland Clinic. On this news, the price of AtriCure common stock dropped from $10.36 per share to $8.04 per share.
If you are a member of the class, you may, no later than February 9, 2007, 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).
While Schatz Nobel Izard has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.