Shareholder Class Action Filed Against Insys Therapeutics, Inc. - INSY
Feb 03, 2016, 10:06 ET
RADNOR, Pa., Feb. 3, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that it has filed a shareholder class action lawsuit against Insys Therapeutics, Inc. (Nasdaq: INSY) ("Insys" or the "Company") on behalf of purchasers of the Company's securities between March 3, 2015 and January 25, 2016, inclusive (the "Class Period").
Insys shareholders who wish to discuss this action and their legal options 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 protected].
For additional information about this lawsuit, or to request information about this action online, please visit https://www.ktmc.com/new-cases/insys-therapeutics-inc.
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.
After the close of the market 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 May 20, 2015, Seeking Alpha published an article entitled "Top prescribers of Insys Therapeutics' Subsys arrested on drug charges," reporting that two of Insys's highest-volume prescribers had been charged with illegal prescription drug distribution by the Drug Enforcement Agency ("DEA"). On this news, the price of the Company's shares declined $2.65 per share, or more than 4%, to close at $57.12 per share on May 20, 2015.
On June 25, 2015, The New York Times reported that a nurse in Connecticut pled guilty to participating in a kickback scheme wherein she accepted approximately $83,000 in kickbacks from Insys in exchange for writing more than $1 million worth of Subsys prescriptions. On this news, the price of the Company's shares declined $3.00 per share, or nearly 8%, to close at $35.74 per share on June 25, 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 $5.93 per share, or nearly 19%, to close at $26.06 per share on December 3, 2015.
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 $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 may, no later than April 4, 2016, petition the Court to be appointed as a lead plaintiff of the class.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. Members of the purported class may petition the Court to be appointed as a lead plaintiff through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. 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 serve 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
(610) 667-7706
[email protected]
SOURCE Kessler Topaz Meltzer & Check, LLP