San Diego, CA -- (ReleaseWire) -- 05/20/2014 -- An investor, who purchased shares of Insys Therapeutics Inc (NASDAQ:INSY), filed a lawsuit in the U.S. District Court for the District of Arizona over alleged violations of Federal Securities Laws by Insys Therapeutics Inc in connection with certain allegedly false and misleading statements made between May 1, 2013 and May 8, 2014.
Investors who purchased shares of Insys Therapeutics Inc (NASDAQ:INSY) have certain options and for certain investors are short and strict deadlines running. Deadline: July 14, 2014. Insys Therapeutics Inc (NASDAQ:INSY investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Insys Therapeutics Inc (NASDAQ:INSY) between May 1, 2013 and May 8, 2014, that the defendants violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims defendants made allegedly false and/or misleading statements concerning, and/or failed to disclose, among other things that Insys Therapeutics Inc engaged in illegal and/or unethical off label marketing of Subsys®, that Insys Therapeutics Inc was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices, and that as a result, the Insys Therapeutics Inc's financial statements were materially false and misleading at all relevant times.
Insys Therapeutics Inc reported that its annual Total Revenue rose from $15.48 million in 2012 to $99.29 million in 2013 and that its Net Loss of $24.38 million in 2012 turned into a Net Income of $40.38 million in 2013.
Then on On December 12, 2013, after the market closed, Insys Therapeutics Inc 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 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.
Then on May 11, 2014, an analyst firm published a report further highlighting the claims against the Michigan doctor, and the problems attendant to Insys Therapeutics Inc's marketing of Subsys, including allegedly illegal off-label marketing.
Shares of Insys Therapeutics Inc (NASDAQ:INSY) declined from $41.99 per share on May 6, 2014 to $20.63 per share on May 15, 2014.
On May 16, 2014, NASDAQ:INSY shares closed at $23.85 per share.
Those who purchased shares of Insys Therapeutics Inc (NASDAQ:INSY) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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