Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of all persons or entities who acquired Insys Therapeutics Incorporated (NASDAQ:INSY) securities between March 3, 2015 and January 25, 2016, inclusive (the “Class Period”).
Insys is a specialty pharmaceutical company that focuses on the development and marketing of supportive care products for patients suffering from chronic pain. Insys’s core product, Subsys, is a sublingual fentanyl spray designed to treat breakthrough cancer pain in opioid-tolerant patients.
According to the lawsuit, the company made materially false and misleading statements to investors and failed to disclose that: (i) the company was engaged in the illegal and improper off-labeling marketing of Subsys; (ii) certain Insys employees—including 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.
On January 25, 2016, the Southern Investigative Reporting Foundation published an article alleging that the company pressured employees to promote the illegal use and sale of Subsys. The article follows a June 25, 2015 New York Times article that covered the conviction of a Connecticut nurse who accepted more than $83,000 in kickbacks from Insys as payment for writing $1 million worth of Subsys prescriptions.
If you purchased Insys securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact J. Brandon Walker, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160205005856/en/
Contacts:
J. Brandon Walker, Esq.,
212-355-4648
investigations@bespc.com
