SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of investors who purchased or otherwise acquired the common stock of Insys Therapeutics, Inc. (“Insys” or the “Company”) (Nasdaq: INSY) between March 3, 2015 and January 25, 2016, inclusive (the “Class Period”).
If you purchased or acquired Insys common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 4, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Insys investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Insys Securities Class Litigation
Insys is a commercial-stage specialty pharmaceutical company that develops and commercializes supportive care products. Insys’s core product, Subsys, is a sublingual fentanyl spray approved by the U.S. Food and Drug Administration (the “FDA”) to treat breakthrough cancer pain.
The action alleges that during the Class Period, Insys and certain of its senior executives misrepresented and failed to disclose that Insys was engaged in off-label marketing of Subsys, that certain Insys employees were complicit in an illegal kickback scheme pursuant to which Insys paid millions of dollars to medical professionals in exchange for prescribing Subsys to patients, and, as a result of the foregoing, Insys’s financial results and guidance were materially false and misleading.
On April 24, 2015, the Southern Investigative Reporting Foundation (“SIRF”) reported an increasing number of patient deaths from off-label uses of Subsys. Following this article, the price of Insys stock fell $6.00 per share, or nearly 10%, to close at $56.42 per share on the next trading day, April 27, 2015.
On May 20, 2015, two top prescribers of Subsys were reportedly arrested by federal authorities and charged with conspiracy to distribute controlled substances outside the usual course of professional practice and to commit healthcare fraud. Following this news, Insys stock price fell $2.65 per share, or more than 4%, from its close on to close at $57.12 on May 20, 2015.
On June 25, 2015, The New York Times reported that a nurse who was a top prescriber of Subsys pled guilty to federal charges of accepting kickbacks from Insys. On this news, Insys’s stock price fell another $3.00 per share, or nearly 8%, from its closing price on June 24, 2015, to close at $35.74.
On December 3, 2015, SIRF reported that Insys’s prior authorization unit routinely changed insurance codes for patients’ diagnoses to ones for “cancer” and engaged in other misconduct to deceive insurers. Following this news, Insys stock price fell another $5.93 per share, or nearly 19%, to close at $26.06 on December 3, 2015.
On January 25, 2016, SIRF reported that Insys executives have continued to pressure the Company’s employees to develop new schemes to promote Subsys for off-label uses. On this news, Insys stock price fell another $1.07 per share, or more than 4%, from its close on January 24, 2016, to close at $21.58 on January 25, 2016.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.