NEW YORK, July 1, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces the filing of a class action lawsuit against INSYS Therapeutics, Inc. ("INSYS" or the "Company") INSY and certain of its officers. The class action, filed in United States District Court, District of Arizona, and docketed under 2:14-cv-01043-GMS, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of INSYS between May 1, 2013 and May 8, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased INSYS securities during the Class Period, you have until July 14, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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 made false and/or misleading statements concerning, and/or failed to disclose, among other things that: (i) the Company 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 has 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, the Company's 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, the Company's 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, analyst firm, Bronte Capital, 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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
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