May 16, 2014
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the District of Arizona on behalf of purchasers (the “Class”) of securities of Insys Therapeutics, Inc. (“Insys” or the “Company”) (NASDAQ: INSY) during the period of May 1, 2013 and May 8, 2014 (the “Class Period”).
INSYS is a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products, primarily intended to assist cancer patients in coping with the symptoms of their disease and treatment or therapy.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business and operations. Specifically, Defendants failed to disclose that: (i) the Company had engaged in illegal and/or unethical off label marketing of Subsys®; (ii) the Company was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices; and (iii) as a result, the Company’s financial statements were materially false and misleading at all relevant times.
On December 12, 2013, after the market closed, the Company announced that “it ha[d] 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. The subpoena requests documents regarding Subsys, including INSYS’ sales and marketing practices relating to this product.” On this news, Insys shares fell $7.73 per share to close at $37.55 per share, a one-day drop of over 17%, on high volume.
On May 8, 2014, a local Michigan news source published an article detailing charges against a Michigan doctor who allegedly accounted for 20% of total nationwide Subsys prescriptions. The doctor was charged by federal prosecutors with defrauding Medicare, private insurers, and prescribing unnecessary medications to patients. On this news, Insys shares fell $6.64 per share, or over 16%, to close on May 9, 2014 at $32.67 per share, on extremely high volume.
On May 11, 2014, Bronte Capital, an analyst firm, published a report further highlighting the claims against the Michigan doctor and the problems attendant to INSYS’ marketing of Subsys, including allegedly illegal off-label marketing. On this news, INSYS shares fell a further $5.04 per share, or 15%, to close on May 12, 2014 at $27.63 per share.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Insys securities during the Class Period. If you invested in Insys securities as described above, and either lost money on the transaction or still hold the security, 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 14, 2014.
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 Insys 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. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last twelve years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of Arizona.