LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP, representing investors of INSYS Therapeutics, Inc. (“INSYS” or the “Company”) (NASDAQ:INSY), has filed a class action lawsuit in the United States District Court for the District of Arizona on behalf of a class (the “Class”) comprising all purchasers of INSYS securities between May 2, 2013 and May 8, 2014, inclusive (the “Class Period”).
Please contact Glancy Binkow & Goldberg LLP, toll-free at (888) 773-9224 or at (212) 682-5340, or by email to shareholders@glancylaw.com to discuss this matter.
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 issued false and/or misleading statements and/or failed to disclose: (1) the Company’s illegal and/or improper marketing of Subsys; (2) that improper marketing of Subsys could lead to regulatory scrutiny; (3) that such regulatory scrutiny could expose the Company to potential fines and other disciplinary actions; and (4), as a result of the foregoing, that the Company’s financial statements were materially false and misleading at all relevant times.
On December 12, 2013, Insys disclosed 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 and requesting documents regarding Subsys, including Insys’ sales and marketing practices relating to Subsys. On this news, shares of Insys stock declined $4.70 per share, or nearly 16%, to close at $25.37 per share on December 13, 2013.
On May 8, 2014, the MLive.com website reported that a Kochville Township, Michigan, neurologist is under federal investigation and accused of defrauding Medicare for allegedly receiving $6.9 million from January 1, 2009 through February 6, 2014, for Subsys he allegedly prescribed to Medicare beneficiaries nationwide during that period. The MLive.com article alleges that the physician was responsible for over 20% of total nationwide Subsys prescriptions. Following this news, the Company’s stock price declined $6.63 per share, more than 17%, to close at $32.68 per share on May 9, 2014, on unusually heavy trading volume.
If you are a member of the Class described above, you may move the Court no later than July 14, 2014, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll Free at (888) 773-9224, or contact Gregory Linkh, Esquire, of Glancy Binkow & Goldberg LLP at 122 E. 42nd Street, Suite 2920, New York, New York 10168, at (212) 682-5340, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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