Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Questcor Pharmaceuticals, Inc.
WILMINGTON, Del.--(BUSINESS WIRE)-- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of Questcor Pharmaceuticals, Inc. ("Questcor" or the "Company") (NASDAQ GS: QCOR) between April 26, 2011 and September 21, 2012, inclusive, (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company, certain of its officers and directors (the "Complaint").
If you purchased shares of Questcor during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/questcor-pharmaceuticals-inc-qcor.
Questcor, a California corporation headquartered in Anaheim, California, is a biopharmaceutical company whose primary product helps patients with serious, difficult-to-treat medical conditions. The Company's primary product is H.P. Acthar® Gel ("Acthar"), an injectable drug that is approved by the U.S. Food and Drug Administration ("FDA") for the treatment of 19 indications, including Multiple Sclerosis ("MS"), Nephrotic Syndrome ("NS"), and Infantile Spasms ("IS"). The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants knew, but concealed from the investing public: (1) that Questcor lacked clinical evidence to support the use of Acthar for indications other than IS; (2) that Questcor had engaged in questionable tactics to promote the sale and use of Acthar in the treatment of MS and NS; and (3) that Questcor lacked a reasonable basis to make positive statements about the Company or its outlook, including statements about the effectiveness of and potential market growth for Acthar. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on September 19, 2012, Citron Research ("Citron") reported that Aetna Inc. ("Aetna"), one of the nation's largest insurers, had recently revised its policy concerning Acthar, which would only severely limit coverage of Questcor's primary drug. Aetna had engaged in a review of the 19 indications for which the FDA had approved the drug. Based upon its findings, Aetna determined that clinical research supported only one of the 19 indications. On this news, shares in Questcor plummeted over 47%, from a close of $50.59 per share on September 18, 2012 to $26.35 per share on September 19, 2012, on volume of over 63 million shares.
Thereafter, on September 24, 2012, the Company filed a Form 8-K with the United States Securities and Exchange Commission that the U.S. government had initiated an investigation into the Company's promotional practices. On this news, share in Questcor declined almost 37%, from a close of $30.13 per share on September 21, 2012 to $19.08 per share on September 24, 2012, on volume of over 31 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than November 26, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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The article Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Questcor Pharmaceuticals, Inc. originally appeared on Fool.com.
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