Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit against Insys Therapeutics, Inc. (Nasdaq: INSY) (“Insys” or the “Company”) on behalf of purchasers of the Company’s securities between March 3, 2015 and January 25, 2016, inclusive (the “Class Period”).
About Insys Therapeutics, Inc. (Nasdaq: INSY)
Insys is a pharmaceutical company that develops and commercializes supportive care products primarily designed to assist patients with pain management attributable to their disease, treatment, or therapy. The Company’s principal product and source of revenue is Subsys, an under the tongue, fentanyl spray designed to treat breakthrough cancer pain in patients that developed a tolerance to pain medication.
Alleged Wrongful Conduct
The complaint alleges that throughout the Class Period, the defendants failed to disclose that the Company was engaged in the illegal and improper off-labeling marketing of Subsys. Further, the complaint alleges that certain Insys employees, including Defendant Michael L. Babich, the President and Chief Executive Officer of Insys during much of the Class Period, were complicit in an illegal kickback scheme operated for the purpose of increasing prescriptions of Subsys.
Investors that purchased or acquired the Company’s stock were harmed because the price of Insys’s common stock was artificially inflated throughout the Class Period by Defendants’ false and misleading statements. Insys’s common stock significantly declined when the information alleged to have been concealed from the market was revealed, causing investors’ losses.
Following a series of disclosures revealing the truth, Insys’ common stock priced declined. In total, on January 25, 2016, Insys stock closed 36% below its Class Period high.
If you purchased shares of Insys Therapeutics, Inc. (Nasdaq: INSY) between March 3, 2015 and January 25, 2016, and would like to learn more about the case, please fill out our online form or contact us today at 888-299-7706 or email@example.com.