Shareholder Rights Law Firm Johnson & Weaver, LLP Investigates Questcor Pharmaceuticals Inc. for Sec
Shareholder Rights Law Firm Johnson & Weaver, LLP Investigates Questcor Pharmaceuticals Inc. for Securities Fraud
SAN DIEGO--(BUSINESS WIRE)-- Shareholder Rights Law Firm Johnson & Weaver, LLP has commenced an investigation into whether certain officers and directors of Questcor Pharmaceuticals Inc. (NAS: QCOR) breached their fiduciary duties to the company and violated federal securities laws by making false and misleading statements about the company's principal pharmaceutical product, H.P. Acthar Gel, by allowing improper marketing practices for that product, and by making false and misleading statements about the company's financial prospects as a result. These actions may have caused the company's stock to trade at artificially inflated prices, harming the company and its investors who lost money when the stock price plummeted.
On September 19, 2012, an insurer announced the results of its review of clinical studies of Questcor's Acthar Gel product. The insurer found that the drug was no better than existing and far less expensive therapies for eighteen of the nineteen applications for which the company had gained approval. The insurer announced that it would therefore no longer reimburse for prescriptions for Acthar Gel for any of those eighteen conditions, as the drug was not "medically necessary" for any condition other than one rare syndrome that causes infantile spasms.
When news of this announcement reached the market, shares of Questcor fell from $50.48 to $26.35, a loss of 47.8%.
Then, on September 24, 2012, Questcor filed with the Securities and Exchange Commission a form 8-K announcing that it had become "aware of a U.S. government investigation involving the company's promotional practices" for the same product. After this second announcement, Questcor stock dropped an additional $7.54 to a fifty-two week low of $18.81.
"We are investigating whether a shareholders' action is appropriate to recover investors' losses from the company or its officers and directors and require the company to implement governance changes to prevent the reoccurrence of similar incidents," said Frank Johnson, partner at Johnson & Weaver, LLP.
Johnson & Weaver invites Questcor shareholders who are concerned about their legal rights and remedies to contact attorney David Elliot at (619) 230-0063 or davide@johnsonandweaver.com.
Johnson & Weaver, LLP is a nationally recognized shareholders' rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
Johnson & Weaver, LLP
David Elliot, 619-230-0063
davide@johnsonandweaver.com
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