According to the law firm press release, Insys is a commercial-stage specialty pharmaceutical company that develops and commercializes supportive care products primarily designed to assist patients with pain management attributable to their disease, treatment, or therapy. The Company’s principal product and source of revenue is Subsys, a sublingual fentanyl spray designed to treat breakthrough cancer pain (“BTCP”) in opioid-tolerant patients.
The shareholder class action complaint alleges that Insys and certain of its executive officers made a series of false and misleading statements, and failed to disclose material adverse facts, about the Company’s business and operations to investors during the Class Period. Specifically, the defendants are alleged to have failed to disclose that: (i) the Company was engaged in the illegal and improper off-labeling marketing of Subsys; (ii) certain Insys employees were complicit in an illegal kickback scheme operated for the purpose of increasing prescriptions of Subsys; and (iii) as a result, the Company’s financial statements were materially false and misleading at all relevant times.
On June 3, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on June 24. Defendants filed a Motion to Dismiss the amended Complaint on January 18, 2017. On August 1, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.