SAN DIEGO & CHANDLER, Ariz.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Insys Therapeutics, Inc. (NasdaqGM: INSY) breached their fiduciary duties to shareholders. Insys, a specialty pharmaceutical company, develops and commercializes supportive care products.
Investors filed a class action complaint against Insys for alleged violations of the Securities Exchange Act of 1934. According to the complaint, Insys promoted prescriptions of its drug Subsys for off-label uses through a kickback scheme, even though the reimbursement for Subsys was tightly regulated and limited to on-label uses. When the government exposed and prosecuted the scheme, Insys attempted to hide its declining financials by publicly boasting its financial health in order to inflate its revenues and earnings. On March 15, 2017, Insys revealed that it would need to restate its financial statements. On June 12, 2018, U.S. District Judge Paula A. Crotty denied defendants' motion to dismiss plaintiff's complaint, paving the way for litigation to proceed.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/insys-therapeutics-inc-july-2018/
Insys Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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