Shareholders Foundation, Inc.

Insys Therapeutics Inc (NASDAQ:INSY) Investor Alert: Lawsuit Alleges False and Misleading Statements

A lawsuit was filed on behalf of investors in Insys Therapeutics Inc (NASDAQ:INSY) shares over alleged securities laws violations. Deadline: February 14, 2014. NASDAQ:INSY investors should contact the Shareholders Foundation.

 
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San Diego, CA -- (SBWIRE) -- 12/17/2013 -- An investor, who purchased 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 May 1, 2013 and December 12, 2013.

Investors who purchased shares of Insys Therapeutics Inc (NASDAQ:INSY) between May 1, 2013 and December 12, 2013, have certain options and for certain investors are short and strict deadlines running. Deadline: February 14, 2014. NASDAQ:INSY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554..

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Insys Therapeutics Inc (NASDAQ:INSY) between May 1, 2013 and December 12, 2013, that Insys Therapeutics Inc and certain of its officers and directors violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff alleges that defendants made allegedly false and/or misleading statements concerning, and/or failed to disclose, among other things that Insys Therapeutics Inc engaged in illegal and/or unethical marketing of Subsys, that Insys Therapeutics Inc was exposed to potential fines and other disciplinary actions as a result of its Subsys marketing practices, and that as a result, Insys Therapeutics Inc’s financial statements were materially false and misleading at all relevant times.

On May 2, 2013, Insys Therapeutics Inc announced the pricing of its initial public offering.

On June 3, 2013, Insys Therapeutics Inc reported its first quarter 2013 results. Among other things, Insys Therapeutics Inc said that its Total first quarter revenue increased to $11.1 million in 2013 versus $2.0 million in 2012 and that sales of Subsys added $9.7 million in net revenue during the first three months of 2013

On August 13, 2013, Insys Therapeutics Inc reported its second quarter 2013 financial results. Among other things, Insys Therapeutics Inc sais that its Total second quarter net revenue increased to $18.8 million in 2013 versus $3.5 million in 2012 and that Subsys generated $18.5 million in net revenue during the second quarter of 2013, up 90.8% quarter-over-quarter from $9.7 million in the first quarter of 2013

On November 12, 2013, Insys Therapeutics Inc reported its third quarter 2013 results. Among other things, Insys Therapeutics Inc said that its Total net revenue increased to $29.2 million in the third quarter of 2013 versus $4.8 million for the third quarter of 2012, and that revenues from Subsys were $28.4 million, up 1,002% over third quarter of 2012 levels and up 53% as compared with the second quarter of 2013.

NASDAQ:INSY shares grew from $9.50 per share in early May 2013 to as high as $48.82 per share on December 9, 2013.

Then on December 12, 2013, after the market closed, Insys Therapeutics Inc 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. Insys Therapeutics Inc said that the subpoena requested documents regarding Subsys®, including Insys Therapeutics' sales and marketing practices relating to this product.

Shares of Insys Therapeutics Inc declined from $49.73 per share on December 10, 2013, to $33.70 per share on December 13, 2013.

On December 16, 2013, NASDAQ:INSYS closed at $40.30 per share.

Those who purchased shares of Insys Therapeutics Inc have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com