RADNOR, Pa., March 7, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds Insys Therapeutics, Inc. (NASDAQ: INSY) ("Insys" or the "Company") shareholders that a class action lawsuit has been filed in United States District Court for the District of Arizona against the Company on behalf of purchasers of the Company's common stock between March 3, 2015 and January 25, 2016, inclusive (the "Class Period").
To view a copy of the shareholder complaint filed in this action, or for additional information about the shareholder lawsuit, please visit https://www.ktmc.com/new-cases/insys-therapeutics-inc.
Insys shareholders who wish to submit their information or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at email@example.com.
Insys is a commercial-stage specialty pharmaceutical company that develops and commercializes supportive care products primarily designed to assist patients with pain management attributable to their disease, treatment, or therapy. The Company's principal product and source of revenue is Subsys, a sublingual fentanyl spray designed to treat breakthrough cancer pain ("BTCP") in opioid-tolerant patients.
The shareholder class action complaint alleges that Insys and certain of its executive officers made a series of false and misleading statements and failed to disclose material adverse facts about the Company's business and operations to investors during the Class Period. Specifically, the defendants are alleged to have failed to disclose that: (i) the Company was engaged in the illegal and improper off-labeling marketing of Subsys; (ii) certain Insys employees—including Defendant Michael L. Babich, the President and Chief Executive Officer of Insys during much of the Class Period—were complicit in an illegal kickback scheme operated for the purpose of increasing prescriptions of Subsys; and (iii) as a result, the Company's financial statements were materially false and misleading at all relevant times.
As more fully detailed in the complaint, on April 24, 2015 the Southern Investigating Report Foundation ("SIRF") published an article entitled "Insys Therapeutics and the New 'Killing It,'" reporting on patients who either died or suffered adverse events while being treated with Subsys. The article also detailed how Insys aggressively markets Subsys. On this news, the price of the Company's shares declined $6.00 per share, or nearly 10%, to close at $56.42 per share on April 27, 2015.
On December 3, 2015, SIRF published an article entitled "Murder Incorporated: Insys Therapeutics, Part I," alleging that Defendant Babich had been forced to resign from the Company by Defendant John N. Kapoor—the Company's founder and the Executive Chairman of Insys's Board of Directors—and that the Company operated a scheme to promote the illegal and improper off-label marketing and sale of Subsys. On this news, the price of the Company's shares declined an additional $5.93 per share, or nearly 19%, to close at $26.06 per share on December 3, 2015.
Finally, on January 25, 2016, SIRF published an article entitled "The Brotherhood of Thieves: Insys Therapeutics," alleging that Insys's executives have continued to pressure Company employees to develop new schemes to promote the illegal and improper off-label marketing and sale of Subsys. On this news, the price of the Company's shares declined an additional $1.07 per share, or nearly 5%, to close at $21.58 per share on January 25, 2016.
Insys shareholders who purchased their securities during the Class Period (March 3, 2015 – January 25, 2016) may, no later than April 4, 2016, petition the Court to be appointed as a lead plaintiff representative of the class.
Members of the purported class may petition the Court through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to petition the Court to be appointed as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT: Kessler Topaz Meltzer & Check, LLP Darren J. Check, Esq. D. Seamus Kaskela, Esq. Adrienne O. Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299-7706
SOURCE Kessler Topaz Meltzer & Check, LLP