Kahn Swick & Foti, LLC (“KSF”) and KSF associate, Charles C. Foti, Jr., reminded investors that they can submit lead plaintiff requests in a securities class action case against Insys Therapeutics Inc (NASDAQ:INSY) until April 4, 2016, if they bought the firm’s stock between March 3, 2015 and January 25, 2016. The investors can approach the form to know about their legal rights and the impact of this lawsuit on them.
The issue
Insys and some of its executives are alleged with failing to report material facts during the Class Period, breaching federal securities laws. The charged misleading and false declarations included, but are not confined to, that: (i) Insys was involved in the improper and illegal off-labeling marketing of its drug Subsys; (ii) some of Insys employees including the CEO and President of company during much of the Class duration were complicit in an unlawful payment scheme ran for the objective of increasing treatments of Subsys; and (iii) following this process, Insys’s financial reports were materially misleading and false at all relevant times.
KSF, whose associates include Charles C. Foti, Jr., is a law entity focused on antitrust, securities, and consumer class measures, along with M&A and breach of fiduciary lawsuit against publicly traded firms on behalf of shareholders. The law entity has offices in California, Louisiana and New York.
The performance
Insys Therapeutics is facing a probe for suspected off-label sales concerning its lead drug Subsys, an advanced pain therapy for cancer patients. Due to the ongoing problem, in a worst case development, depending on what the market have historically witnessed when a firm’s marketing practices are probed, Insys could be smashed with a financial penalty.
Despite the ongoing problems, Subsys fourth quarter sales surged 38% to $91.1 million, and Insys Therapeutics ended the fiscal with $202.3 million in cash, investments, and cash equivalents. Though not a definite case for optimism, the company hardly resembles another firm that should swallow as elevated short share percentage as it shows currently.
