Insys Therapeutics Inc (NASDAQ: INSY) Investor Securities Class Action Lawsuit 02/02/2016

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Company Name(s): 
Insys Therapeutics
Case Name: 
Insys Therapeutics Shareholder Class Action Lawsuit 02/02/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: INSY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/02/2016
Class Period Begin: 
08/12/2014
Class Period End: 
12/08/2016
Court of Filing: 
U.S. District Court for the District of Arizona
Deadline To File for Lead: 
04/04/2016
Date Settled: 
06/05/2020
Settlement Amount: 
$2,000,000
Deadline to Participate in Settlement: 
09/12/2020
Settlement Notice: 
Settlement Proof: 
Summary: 

June 5, 2020 - The court preliminarily approved the settlement.

May 22, 2020 - Parties filed a stipulation of settlement.

August 1, 2017 - The court granted in part and denied in part defendants' motion to dismiss.

August 19, 2016 - Defendants filed a motion to dismiss.

June 24, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Insys Therapeutics Inc (NASDAQ: INSY) common shares between August 12, 2014 and April 8, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between August 12, 2014 and April 8, 2016.

February 2, 2016 - An investor in shares of Insys Therapeutics Inc (NASDAQ: INSY) filed a lawsuit in the U.S. District Court for the District of Arizona over alleged violations of Federal Securities Laws by Insys Therapeutics Inc in connection with certain allegedly false and misleading statements made between March 3, 2015 and January 25, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Insys Therapeutics Inc (NASDAQ: INSY) common shares between March 3, 2015 and January 25, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 3, 2015 and January 25, 2016 the defendants are alleged to have failed to disclose that the Company was engaged in the illegal and improper off-labeling marketing of Subsys, that certain Insys Therapeutics Inc employees—including Defendant Michael L. Babich, the President and Chief Executive Officer of Insys Therapeutics Inc during much of the Class Period—were complicit in an illegal kickback scheme operated for the purpose of increasing prescriptions of Subsys, and that as a result, the Company's financial statements were materially false and misleading at all relevant times.

On April 24, 2015, an article was published entitled "Insys Therapeutics and the New 'Killing It,'" reporting on patients who either died or suffered adverse events while being treated with Subsys. The article also detailed how Insys Therapeutics Inc aggressively markets Subsys.

On May 20, 2015, another article wa published entitled "Top prescribers of Insys Therapeutics' Subsys arrested on drug charges," reporting that two of Insys Therapeutics Inc's highest-volume prescribers had been charged with illegal prescription drug distribution by the Drug Enforcement Agency ("DEA").

On June 25, 2015, another article reported that a nurse in Connecticut pled guilty to participating in a kickback scheme wherein she accepted approximately $83,000 in kickbacks from Insys Therapeutics Inc in exchange for writing more than $1 million worth of Subsys prescriptions.

On December 3, 2015, another article was published entitled "Murder Incorporated: Insys Therapeutics, Part I," alleging that one Defendant had been forced to resign from the Company by Insys Therapeutics Inc’s founder and the Executive Chairman of Insys Therapeutics Inc's Board of Directors—and that Insys Therapeutics Inc operated a scheme to promote the illegal and improper off-label marketing and sale of Subsys.

On January 25, 2016, another article was published entitled "The Brotherhood of Thieves: Insys Therapeutics," alleging that Insys Therapeutics Inc's executives have continued to pressure Company employees to develop new schemes to promote the illegal and improper off-label marketing and sale of Subsys.

Shares of Insys Therapeutics Inc (NASDAQ: INSY) declined from $44.74 per share in August 2-015 to as low as $14.18 per share on February 3, 2016.