NEW YORK, June 2, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit was filed in the United States District Court for the District of Arizona against Insys Therapeutics, Inc. ("Insys") (Nasdaq:INSY) and certain of its officers. The class action is on behalf of all purchasers of Insys common stock between May 1, 2013 and May 8, 2014 ("Class Period").
If you want more information about the Insys Shareholder Class Action, please email info@morgansecuritieslaw.com or contact us at 1-800-732-5200. If you purchased Insys shares you may, no later than July 14, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
Insys is a specialty pharmaceutical company that develops and commercializes innovative supportive care products. The Company has two marketed products – a generic equivalent to Marinol for chemotherapy-induced nausea, vomiting and anorexia in patients with AIDS, and Subsys, a proprietary sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant patients.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public, 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.
According to the Complaint, on December 12, 2013, the Company announced that it had 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 requested documents regarding Subsys, including the Company's sales and marketing practices related to Subsys. Following this news, the Company's shares fell by 16% to close at $25.37.
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 Subsys prescriptions to Medicare beneficiaries nationwide. The doctor was charged by federal prosecutors with defrauding Medicare and private insurers, and prescribing unnecessary medications to patients. Following this news, Insys's stock price declined 17% on heavy trading volume.
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