According to the law firm press release, Insys is a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products, primarily intended to assist cancer patients cope with the symptoms of their disease and treatment or therapy. The Company's principal source of revenues is through sales of Subsys, a sublingual spray for managing cancer pain.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operations. Specifically, Defendants made false and/or misleading statements concerning, and/or failed to disclose, among other things that: (i) the Company engaged in illegal and/or unethical marketing of Subsys; (ii) the Company was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices; and, (iii) as a result, the Company's financial statements were materially false and misleading at all relevant times.
On December 12, 2013, after the market close, the company announced that, "it has received a subpoena from the Office of Inspector General of the Department of Health and Human Services ("HHS") in connection with an investigation of potential violations involving HHS programs. The subpoena requests documents regarding Subsys, including Insys' sales and marketing practices relating to this product." On this news, the company's shares fell $7.73 per share, to close at $37.55 per share, a one day drop of over 17%, on high volume.
On February 19, 2014, pursuant to Federal Rule of Civil Procedure 41 (a)( 1 )(A)(i), the Plaintiff voluntarily dismissed this action as to Plaintiff only, without prejudice, as to all Defendants.
On May 15, 2014, a related action docketed under 14-CV-01043 was filed in the District of Arizona.
On May 28, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved on June 3. On December 7, 2015, the Court granted final approval of the Settlement and dismissed this case.