NEW YORK, Dec. 18, 2013 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit was filed against Insys Therapeutics, Inc. ("Insys") (Nasdaq:INSY) and certain of its officers. The class action is on behalf of all persons or entities who purchased or otherwise acquired securities of Insys between May 1, 2013 and December 12, 2013 ("Class Period").
If you purchased Insys during the Class Period, you may request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party acting on behalf of other class members to direct the litigation. If you wish to learn more about the case or serving as lead plaintiff, contact us here.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Insys' business and operations. Specifically, Defendants made false and/or misleading statements concerning, and/or failed to disclose, among other things, that: (i) Insys engaged in illegal and/or unethical marketing of Subsys; (ii) Insys was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices; and, (iii) as a result, Insys' financial statements were materially false and misleading at all relevant times.
On December 12, 2013, after the stock market closed, 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." Following this news, shares of Insys fell $7.05 or more than 15% during trading on December 13, 2013, to close at $38.06.
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