NEW YORK, NY--(Marketwired - Jun 13, 2014) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in INSYS Therapeutics, Inc. ("INSYS" or the "Company") (NASDAQ: INSY) of the July 14, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against INSYS and certain executives.
A complaint has been filed in the District of Arizona on behalf of all persons who purchased or otherwise acquired INSYS securities between May 1, 2013 and May 8, 2014 (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
The complaint further 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."
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.