Possis Medical, Inc. NASD: POSS

Company: United American Healthcare Corporation
Ticker Symbol: NASD: POSS
Class Period: September 24, 2002 to August 24, 2004
Date Filed: Jun-03-05
Lead Plaintiff Deadline: Aug-02-05
Court: District, MN
A class action lawsuit was filed today on behalf of purchasers of the securities of Possis Medical, Inc. ("Possis" or the "Company") (Nasdaq: POSS) between September 24, 2002 and August 24, 2004, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

If you bought the securities of Possis between September 24, 2002 and August 24, 2004, inclusive, and sustained damages, you may, no later than August 2, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

The action, numbered 05cv1084, is pending before the Hon. James M. Rosenbaum in the United States District Court for the District of Minnesota against defendants Possis, Robert G. Dutcher (CEO and President) and Eapen Chacko (CFO).

The complaint alleges that Possis's primary product was the AngioJet System, a non-surgical, minimally invasive catheter system designed to rapidly remove blood clots using a stream of water. The complaint further alleges that, unbeknownst to investors, and contrary to defendants' representations: (i) the AngioJet System was not more effective than existing alternatives, including competing drug therapies, such as the leading product Urokinase, nor did AngioJet reduce significant procedural complications or significantly increase positive benefits such as improved blood flow or other similar effects; (ii) AngioJet could not be expanded as a "technology platform" because AngioJet was not in the first instance effective for routine use in a broad range of heart attack patients to reduce the size of infracts; and (iii) as a result of the foregoing problems, Possis could not maintain its projected revenue growth or achieve sustained revenue growth targets as high as 35%.

The truth emerged on August 24, 2004. On that date, shares of Possis fell precipitously and the Company lost almost 40% of its market capitalization after it was disclosed that AngioJet failed to demonstrate clinical superiority in the majority of heart attach patients. Shares of Possis traded down more than $11.75 per share, or 38%, to $19.00 per share, as defendants lowered 2005 earnings and revenue guidance.

The complaint further alleges that defendants were motivated to and did conceal the true safety and efficacy of AngioJet, and defendants' ability to expand and develop Prossis's AngioJet technology, because it enabled defendants to artificially inflate the price of Possis shares and then allowed defendants and other Company insiders to sell more than 361,730 shares of their privately held Possis stock to the unsuspecting public for proceeds in excess of $7.07 million while in possession of material adverse, non-public information about the Company.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.

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