NEW YORK, May 12, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of INSYS Therapeutics, Inc. ("INSYS" or the "Company")(NASDAQ: INSY). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 237.
The investigation concerns whether INSYS and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On December 6, 2013, the company disclosed that it 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. According to a Company-issued press release, "the subpoena requests documents regarding Subsys®, including Insys' sales and marketing practices relating to this product."
On this news, shares of INSYS fell $10.03 per share to $35.33, or more than 22.23%, in intraday trading on December 12, 2013.
On May 8, 2014, a report published in a Michigan Local news website, stated that Dr. Gavin Awerbuch was arraigned in federal court on charges of health care fraud and distribution of controlled substances. Dr. Awerbuch allegedly prescribed INSYS's drug Subsys, a painkiller that is supposed to be used only by cancer patients, to individuals who did not require the pharmaceutical, and then billed Medicare for the prescriptions. Dr. Awerbuch prescribed approximately 20.3% of the Subsys given to Medicare beneficiaries nationwide between January 2009 and February 2014.
On this news, shares of INSYS fell $5.03 per share to $27.62, or more than 15.48%, in intraday trading on May 12, 2014.
On May 13, 2014, an article published by The New York Times questioned the substantial off-label prescription of Subsys by doctors.
On this news, shares of INSYS fell $3.10 per share to $24.20, or more than 11.34%, in intraday trading on May 14, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP