Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Insys Therapeutics, Inc.

By Business Wire,  June 05, 2014, 08:00:00 AM EDT


WASHINGTON--(BUSINESS WIRE)-- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Insys Therapeutics, Inc. ("Insys" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit was filed in the U.S. District Court for the District of Arizona by another law firm on behalf of purchasers of the common stock of Insys Therapeutics, Inc. (NASDAQ:INSY) between May 1, 2013 and May 8, 2014, inclusive (the "Class Period").

At the time of its initial public offering in May 2013, Insys had two marketed products, including Subsys, an opioid used to relieve chemotherapy-induced nausea and pain. Subsys received FDA approval for the treatment of breakthrough cancer pain in opioid-tolerant patients in January 2012, and Insys commercially launched the drug in March 2012 through its commercial organization consisting at that time of approximately 50 sales professionals. The complaint alleges that Insys and certain of its officers and directors ("Defendants") misrepresented and/or failed to disclose that: (1) the Company engaged in illegal and/or unethical off label marketing of Subsys; (2) the Company was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices; and, (3) as a result, the Company's financial statements were materially false and misleading.

On May 8, 2014, a local Michigan news source, the website MLive.com, published an article titled "Michigan Neurologist Under Federal Medicare Fraud Investigation." According to the article, the doctor was under investigation by the FBI, the DEA and the IRS for allegedly prescribing unnecessary medication to patients, including Subsys, and billing Medicare and private insurers for tests he did not conduct. The article stated, in relevant part:

Medicare paid [Dr. Gavin] Awerbuch$6.9 million from Jan. 1, 2009, through Feb. 6, 2014, for Subsys he prescribed. The next highest amount a U.S. prescriber received was $1.6 million. "Awerbuch is responsible for approximately 20.3 percent of the Subsys prescribed to Medicare beneficiaries nationwide during this time," the [federal investigator's] affidavit stated. He wrote 1,283 prescriptions for the drug in five years, while the next closest prescriber wrote 203 prescriptions, the complaint stated.

The doctor was charged by federal prosecutors with defrauding Medicare and private insurers, and prescribing unnecessary medications to patients, among other things. The price of Insys shares fell from $39.31 to $32.68 on May 9.

Cohen Milstein encourages all investors who purchased Insys common stock between May 1, 2013 and May 8, 2014 or former employees with information concerning this matter to contact the firm.

If you are an Insys shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than July 14, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.

The firm has been repeatedly appointed by federal courts across the country to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.

Jordan Hill

Cohen Milstein Sellers & Toll PLLC

1100 New York Avenue, N.W.

West Tower, Suite 500

Washington, D.C. 20005

Telephone: (888) 240-0775 or (202) 408-4600

Email: stoll@cohenmilstein.com; jhill@cohenmilstein.com

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Source: Cohen Milstein Sellers & Toll PLLC



This article appears in: News Headlines

Referenced Stocks: INSY


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