NEW YORK, Oct. 4, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased securities of BioScrip, Inc. ("BioScrip" or the "Company") (Nasdaq:BIOS) during the period between August 8, 2011 and September 20, 2013, inclusive (the "Class Period"). The Complaint seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The Complaint alleges that Defendants concealed from the investing public that: (1) the Company improperly distributed the Novartis Pharmaceuticals Corporation product Exjade ("Exjade") through its specialty pharmacy operations, in violation of the False Claims Act and other federal and state statutes; and (2) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
According to the Complaint, on September 23, 2013, the Company disclosed in a Form 8-K that it had received a civil investigative demand issued by the United States Attorney's Office for the Southern District of New York and a subpoena from the New York State Attorney General's Medicaid Fraud Control Unit, regarding the distribution of Exjade by the Company's legacy specialty pharmacy division. On this news, shares in BioScrip dropped more than 23%, closing at $8.47 per share on September 24, 2013, from a close the day before the announcement of $11.07, on unusually heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than November 29, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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CONTACT: Thomas J. McKenna, Esq. Gainey & McKenna (212) 983-1300 firstname.lastname@example.orgSource:Gainey McKenna& Egleston