WILMINGTON, Del., April 28, 2014 /PRNewswire/ -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Questcor Pharmaceuticals, Inc. ("Questcor" or the "Company") (NASDAQ: QCOR) relating to the sale of the Company to Mallinckrodt plc (NYSE: MNK) ("Mallinckrodt"). On April 7, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Mallinckrodt will acquire Questcor in a merger valued at roughly $5.6 billion. As a result of the merger, shareholders are anticipated to receive $30 in cash and .897 shares of Mallinckrodt for each share of Questcor stock.
On February 27, 2014 and March 14, 2014 respectively, research analyst firm Citron Research published two articles asserting that the Company's primary drug, Acthar, a drug used to manage difficult-to-treat autoimmune conditions, is a "mislabeled, mis-dosed unproven drug . . . [marketed] to vulnerable, chronically ill patients." In a ten-year period, the price for a vial of Acthar has risen from $40 to $28,000. As noted by Citron, since January 2010, insiders at the Company have sold over $249 million of their stock. An investigation by the FDA is currently ongoing.
Since the announcement of the merger, the Company's stock price has fallen roughly -1.9%. Moreover, the Company disclosed today that it missed Q1 revenues by $12.71 million.
Given this information, Andrews & Springer LLC is preparing a class action lawsuit as a result. If you own shares of Questcor and want to receive additional information and take action, please visit us at http://www.andrewsspringer.com/cases-investigations/questcor or contact Craig J. Springer, Esq. at [email protected], or call toll free at 1-800-423-6013. You may also follow us on LinkedIn, Twitter or Facebook for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. This notice may constitute Attorney Advertising.
SOURCE Andrews & Springer LLC