February 4, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the District of Arizona on behalf of a class (the “Class”) consisting of all persons or entities who purchased common shares of Insys Therapeutics Inc. (“Insys” or the “Company”) (NASDAQ: INSY) from March 3, 2015 through January 25, 2016 (the “Class Period”). The complaint charges Insys and certain of its officers with violations of the Securities Exchange Act of 1934.
Insys is a commercial-stage specialty pharmaceutical company that focuses on the development and marketing of supportive care products, designed to help patients with pain management attributable to their disease, treatment, or therapy. Insys’s main product and source of revenue is Subsys, a sublingual fentanyl spray designed to treat breakthrough cancer pain (“BTCP”) in opioid-tolerant patients.
The Complaint alleges that Insys made materially false and misleading statements to investors and/or 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.
On January 25, 2016, the Southern Investigating Report Foundation published an article entitled “The Brotherhood of Thieves: Insys Therapeutics,” alleging that Insys pressured employees to develop new schemes to promote the illegal and inappropriate off-label use and sale of Subsys.
Following this news, Insys shares fell $1.07 per share, or nearly 5%, to close at $21.58 per share on January 25, 2016.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Insys common stock during the Class Period. If you invested in Insys securities as described above, and lost money 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 April 4, 2016.
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.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 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 District of Arizona.