According to the Complaint, Corcept Therapeutics Incorporated is a pharmaceutical company that purports to develop medications to treat severe metabolic, oncologic, and psychiatric disorders by modulating the effect of cortisol. Korlym is the Company’s drug that has been approved by the FDA to treat hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company had improperly paid doctors to promote its drug Korlym; (2) that the Company aggressively promoted Korlym for off-label uses; (3) that the Company’s sole specialty pharmacy was a related party; (4) that the Company artificially inflated its revenue and sales using illicit sales practices through a related party; (5) that such practices are reasonably likely to lead to regulatory scrutiny; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On October 7, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a first amended Complaint on December 6. On March 20, 2020, Lead Plaintiff filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on May 11. On November 20, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint. On December 21, Lead Plaintiff filed a third amended Complaint. Defendants filed a Motion to Dismiss the third amended Complaint on February 19, 2021. On August 24, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

On February 10, 2023, the parties notified the Court that they had reached an agreement in principle to Settle the case. The parties entered into a Stipulation of Settlement on April 11. The Court granted preliminary approval of the Settlement on January 4, 2024.