SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/questcor/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Questcor Pharmaceuticals, Inc. (“Questcor”) (NASDAQ:QCOR) common stock during the period between April 26, 2011 and September 21, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/questcor/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Questcor and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Questcor is a biopharmaceutical company. The Company’s primary product is H.P. Acthar Gel (Repository Corticotropin Injection) (“Acthar”), an injectable drug that is approved by the U. S. Food and Drug Administration (“FDA”) for the treatment of 19 conditions, including multiple scelorosis (“MS”), nephrotic syndrome and infantile spasms.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public about the effectiveness of Acthar as a treatment for MS and nephrotic syndrome, making it impossible for shareholders to gain a meaningful or realistic understanding of the drug’s prospects and market success. As a result of defendants’ false statements, Questcor’s stock traded at artificially inflated prices during the Class Period, reaching a high of $57.64 per share on July 9, 2012.
On September 19, 2012, Citron Research reported that Aetna Inc. (“Aetna”), one of the nation’s largest insurers, had recently revised its policy concerning Acthar, which would severely limit coverage of Questcor’s primary drug. Aetna had engaged in a review of the 19 indications for which the FDA had approved Acthar and determined that clinical research supported only one of the 19 indications. In Aetna’s clinical policy bulletin issued in connection with its review, Aetna reported that studies suggested that the drug is only “medically necessary” for West syndrome, a rare condition that causes infantile spasms, and not for other indications, such as MS, that are treated with steroids. On this news, Questcor’s stock plummeted $24.17 per share to close at $26.35 per share on September 19, 2012, a one-day decline of 48%. Then, on September 24, 2012, Questcor announced in a Form 8-K filed with the SEC that the U.S. government had initiated an investigation into the Company’s promotional practices. After this news, Questcor’s stock dropped $11.05 per share to close at $19.08 per share on September 24, 2012, a one-day decline of 37%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) Questcor lacked clinical evidence to support the use of Acthar for indications other than infantile spasms; (b) Questcor had engaged in questionable tactics to promote the sale and use of Acthar in the treatment of MS and nephrotic syndrome; and (c) Questcor lacked a reasonable basis to make positive statements about the Company or its outlook, including statements about the effectiveness of and potential market growth for Acthar.
Plaintiff seeks to recover damages on behalf of all purchasers of Questcor common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.