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
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 email@example.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.
Cohen Milstein Sellers & Toll
1100 New York Avenue, N.W.
West Tower, Suite 500
Telephone: (888) 240-0775 or (202) 408-4600
Source: Cohen Milstein Sellers & Toll PLLC