Insys investors may receive additional information about the case by clicking the link "Join this Class Action" above.
Insys is a commercial-stage specialty 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, a sublingual fentanyl spray designed to treat breakthrough cancer pain (“BTCP”) in opioid-tolerant patients.
The shareholder class action complaint alleges that Insys and certain of its executive officers made a series of false and misleading statements, and failed to disclose material adverse facts, about the Company’s business and operations to investors during the Class Period. Specifically, the defendants are alleged to have failed to disclose that: (i) the Company was engaged in the illegal and improper off-labeling marketing of Subsys; (ii) 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; and (iii) as a result, the Company’s financial statements were materially false and misleading at all relevant times.
After the close of the market on April 24, 2015, the Southern Investigating Report Foundation (“SIRF”) published an article entitled “Insys Therapeutics and the New ‘Killing It,’” reporting on patients who either died or suffered adverse events while being treated with Subsys. The article also detailed how Insys aggressively markets Subsys. On this news, the price of the Company’s shares declined $6.00 per share, or nearly 10%, to close at $56.42 per share on April 27, 2015.
On May 20, 2015, Seeking Alpha published an article entitled “Top prescribers of Insys Therapeutics’ Subsys arrested on drug charges,” reporting that two of Insys’s highest-volume prescribers had been charged with illegal prescription drug distribution by the Drug Enforcement Agency (“DEA”). On this news, the price of the Company’s shares declined $2.65 per share, or more than 4%, to close at $57.12 per share on May 20, 2015.
On June 25, 2015, The New York Times reported that a nurse in Connecticut pled guilty to participating in a kickback scheme wherein she accepted approximately $83,000 in kickbacks from Insys in exchange for writing more than $1 million worth of Subsys prescriptions. On this news, the price of the Company’s shares declined $3.00 per share, or nearly 8%, to close at $35.74 per share on June 25, 2015.
On December 3, 2015, SIRF published an article entitled “Murder Incorporated: Insys Therapeutics, Part I,” alleging that Defendant Babich had been forced to resign from the Company by Defendant John N. Kapoor—the Company’s founder and the Executive Chairman of Insys’s Board of Directors—and that the Company operated a scheme to promote the illegal and improper off-label marketing and sale of Subsys. On this news, the price of the Company’s shares declined $5.93 per share, or nearly 19%, to close at $26.06 per share on December 3, 2015.
On January 25, 2016, SIRF published an article entitled “The Brotherhood of Thieves: Insys Therapeutics,” alleging that Insys’s executives have continued to pressure Company employees to develop new schemes to promote the illegal and improper off-label marketing and sale of Subsys. On this news, the price of the Company’s shares declined $1.07 per share, or nearly 5%, to close at $21.58 per share on January 25, 2016.
Insys shareholders who purchased their securities during the Class Period may, no later than April 4, 2016, petition the Court to be appointed as a lead plaintiff of the class.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706