A law firm filed a class action lawsuit against a pharmaceutical company after allegations of federal securities laws surfaced.
Pomerantz Grossman Hufford Dahlstrom and Gross, LLP, noted that the class action claim, which was filed in the U.S. District Court for the District of Arizona, was for those who acquired Insys Therapeutics, Inc., stock during the class period between May 1, 2013, and Dec. 12, 2013. It involves potential violations of the Securities Exchange Act of 1934, specifically Sections 10(b) and 20(a), as well as Rule 10b-5.
Insys Therapeutics allegedly made statements that were either false or misleading when referencing the company's operations. This includes a marketing campaign of its cancer pain spray Subsys, that may be unethical or illegal. It also was punished through fines for these issues.
Specifically, the company was subpoenaed by the U.S. Department of Health and Human Services Office of the Inspector General for its marketing practices on Dec. 12, 2013. When this occurred, the company's stock fell to $37.55 per share, which was $7.73 per share or 17 percent lower than the previous day's level.
Those shareholders who are interested in taking up the position of lead plaintiff should file the proper paperwork with the court by Feb. 14, 2014. It is not required to be lead plaintiff in order to participate in the class.
Learning more about the lawsuit is possible by speaking to the firm. Shareholders can access the suit on the law firm's website, while member Robert Willoughby would be the contact for all other related information. He can be reached by email or phone. Stockholders who are trying to reach him by email should ensure their mailing address, phone number and total shares purchased are listed when contacting.
Investigation also underway
Another law office is looking into many of the aforementioned claims, and it also may have a lawsuit on the way.
Brodsky and Smith noted it began an investigation of Insys Therapeutics' board of directors. This was because by its measure, the company had shares fall 29 percent after it received the subpoena from the government office.
Those who want to learn more about the investigation can speak with Evan Smith or Jason Brodsky. Both can be reached by email, phone or mail. It is also possible to visit the firm's website to learn more about this process.