| Company: | Insys Therapeutics, Inc |
| Ticker Symbol: | INSY |
| Class Period: | May-1-13 to Dec-12-13 |
| Date Filed: | Feb-3-14 |
| Lead Plaintiff Deadline: | Apr-4-14 |
| Court: | District of Arizona |
| Allegations: | |
The class action, filed in United States District Court, District of Arizona, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Insys between May 1, 2013 and December 12, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Insys is a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products, primarily intended to assist cancer patients cope with the symptoms of their disease and treatment or therapy. The Company's principal source of revenues is through sales of Subsys, a sublingual spray for managing cancer pain.
The Complaint 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 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 close, 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. The subpoena requests documents regarding Subsys, including Insys' sales and marketing practices relating to this product." 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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
