INSYS Therapeutics, Inc.
Period: Feb 23, 2016 to Mar 15, 2017
Lead Plaintiff Deadline: May 16, 2017
Summary of Case:
A securities class action has been filed against INSYS Therapeutics, Inc. ("INSY") on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Insys securities between February 23, 2016 through March 15, 2017. This case has been filed in the USDC - Southern District of New York.
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, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Insys had overstated its 2015 net revenue; (ii) Insys had misstated its sales allowances for 2016; (iii) accordingly, the Company lacked effective internal controls over financial reporting; and (iv) as a result of the foregoing, Insys's public statements were materially false and misleading at all relevant times.
On March 15, 2017, post-market, Insys announced that it would delay the release of its financial results for the quarter and year ended December 31, 2016. Insys advised investors that "[t]he Audit Committee of the Company's Board of Directors has been conducting an independent review of the Company's processes related to estimation of, and increases to, certain sales allowances recorded during 2016, with a potential reduction of 2015 net revenue and pre-tax income not expected to exceed $5 million, as well as extended payment terms offered to certain customers during the third quarter of 2016."
On this news, Insys's share price fell $0.49, or 4.64%, to close at $10.06 on March 16, 2017.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.