Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Insys Therapeutics, Inc.
NEW YORK, May 16, 2014 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the District of Arizona on behalf of purchasers (the "Class") of securities of Insys Therapeutics, Inc. ("Insys" or the "Company") (NASDAQ: INSY) during the period of May 1, 2013 and May 8, 2014 (the "Class Period").
INSYS is a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products, primarily intended to assist cancer patients in coping with the symptoms of their disease and treatment or therapy.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operations. Specifically, Defendants failed to disclose that: (i) the Company had engaged in illegal and/or unethical off label marketing of Subsys®; (ii) the Company was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices; and (iii) as a result, the Company's financial statements were materially false and misleading at all relevant times.
On December 12, 2013, after the market closed, the Company announced that "it had received a subpoena from the Office of Inspector General of the Department of Health and Human Services ("HHS") in connection with an investigation of potential violations involving HHS programs. The subpoena requests documents regarding Subsys, including INSYS' sales and marketing practices relating to this product." On this news, Insys shares fell $7.73 per share to close at $37.55 per share, a one-day drop of over 17%, on high volume.
On May 8, 2014, a local Michigan news source published an article detailing charges against a Michigan doctor who allegedly accounted for 20% of total nationwide Subsys prescriptions. The doctor was charged by federal prosecutors with defrauding Medicare, private insurers, and prescribing unnecessary medications to patients. On this news, Insys shares fell $6.64 per share, or over 16%, to close on May 9, 2014 at $32.67 per share, on extremely high volume.
On May 11, 2014, Bronte Capital, an analyst firm, published a report further highlighting the claims against the Michigan doctor and the problems attendant to INSYS' marketing of Subsys, including allegedly illegal off-label marketing. On this news, INSYS shares fell a further $5.04 per share, or 15%, to close on May 12, 2014 at $27.63 per share.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Insys securities during the Class Period. If you invested in Insys securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 14, 2014.
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. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Insys shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or [email protected].
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last twelve years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of Arizona.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2014 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
[email protected]
Logo - http://photos.prnewswire.com/prnh/20120202/MM47134LOGO
SOURCE Bernstein Liebhard LLP
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article