Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Isoray, Inc.
June 22, 2015
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Eastern District of Washington on behalf of shareholders (the “Class”) who purchased shares of IsoRay, Inc. (“IsoRay” or the “Company”) (NYSE: ISR) securities (the “Class”) between May 20, 2015 and May 21, 2015 (the “Class Period”).
The complaint charges IsoRay and certain of its officers and directors with violations of the Securities Exchange Act of 1934. IsoRay develops, manufactures, and sells isotope-based medical products and devices for the treatment of cancer and other malignant diseases. In particular, the Company produces Proxcelan Cesium-131 brachytherapy seeds, which are small devices used in an interstitial radiation procedure and have become one of the primary treatments of prostate cancer. IsoRay has been seeking to expand the uses of Cesium-131 seeds to other cancer treatments, including lung cancer, to increase potential revenue.
On May 20, 2015, IsoRay issued a press release touting the publication of the first major peer reviewed study showing so-called “outstanding” results using Cesium-131 seeds in the treatment of lung cancer, including a 96 percent success rate in local control (control of the tumor in the lung) and 100 percent survival at five years in high risk patients. As a result of this news, IsoRay’s stock nearly doubled in price to $3.12 per share on May 20, 2015.
Then, on May 21, 2015, TheStreet.com published an article by Adam Feuerstein asserting that IsoRay took liberties with clinical data from the study by using selectively edited findings to make its Cesium-131 product seem better than it really was and to prop up the Company’s stock price. The article also stated that the authors of the study “do not endorse IsoRay’s Cesium-131 or call the results ‘outstanding.’ They conclude that early-stage lung cancer patients may benefit from surgery plus Cesium-131 or an alternative form of radiation therapy compared to surgery alone.” On this news, the price of IsoRay securities dropped $1.10 per share, to close at $2.02 per share on May 21, 2015, a 35% decline, on volume of 52.8 million shares.
Plaintiffs seek to recover damages on behalf of all Class members who invested in IsoRay securities during the Class Period. If you invested in IsoRay securities as described above, and lost over $100,000 (whether realized losses or unrealized losses on stock you still hold) on the transactions, 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 21, 2015.
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 IsoRay shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Eastern District of Washington.