An investigation was reported for shareholders of Insys Therapeutics Inc (NASDAQ:INSY) concerning potential violations of fiduciary duties by specific directors at the company. Shareholders who bought shares of the company and currently own any of those shares have specific alternatives and can contact the Shareholders Foundation.
The concerns
In April 2015, an article was released stating on patients who either suffered adverse events or died while being cured with Subsys. It even detailed how Insys aggressively markets Subsys. Then in May 2015, another article was released reporting that two of company’s highest-volume prescribers were charged with unlawful prescription drug delivery by the Drug Enforcement Agency. It was further followed by another article released in June 2015, which stated that a nurse in Connecticut appealed guilty to partaking in a kickback arrangement wherein she accepted around $83,000 in payments from Insys in lieu for writing over $1 million worth of ‘Subsys’ prescriptions.
The publications didn’t stop here, and then in December 2015 another article was issued claiming that one Perpetrator had been mandated to resign from the firm by Insys’ founder and that company managed a scheme to promote the improper and illegal off-label sale and marketing of Subsys. Earlier in this year, on January 25, 2016, an article was published alleging that company officials have continued to pressure firm employees to plan new schemes to promote the improper and illegal off-label sale and marketing of Subsys.
Later in February 2016, a litigation was submitted in Arizona against the company over alleged breaches of Federal Securities Laws. The accuser appealed that during the period starting from March 3, 2015, to January 25, 2016, the wrongdoers are supposed to have failed to reveal that the firm was engaged in the improper and illegal off-labeling marketing of Subsys, that specific Insys staff, including Michael L. Babich, the CEO and President of Insys were complicit in an unlawful kickback scheme.
