NEW YORK, Oct. 3, 2012 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a federal securities class action lawsuit against Questcor Pharmaceuticals, Inc. ("Questcor" or the "Company") (Nasdaq:QCOR) and certain of its officers. The class action (SACV 12-1707-DOC), filed in the United States District Court, Central District of California, is on behalf of all persons who purchased Questcor common stock between April 4, 2011 and September 21, 2012, inclusive (the "Class Period"). This class action is brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10(b)-5 promulgated thereunder.
If you are a shareholder who purchased Questcor common stock during the Class Period, you have until November 26, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Questcor is a biopharmaceutical company whose primary product, Acthar, helps patients with serious, difficult-to-treat medical conditions. Its primary product is H.P. Acthar® Gel, an injectable drug approved by the FDA for the treatment of 19 indications, in particular the treatment of acute exacerbation of multiple sclerosis in adults, as well as the treatment of nephrotic syndrome and of infantile spasms in children under two years of age. The Company generates substantially all its revenues from these three indications, particularly from its treatment of MS.
The Complaint alleges that, throughout the Class Period, the Company made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Questcor made false and/or misleading statements and/or failed to disclose that: (i) the Company was disseminating false and misleading statements to the public as to the efficacy of its 60-year-old drug, Acthar, as a treatment for multiple sclerosis and for nephrotic syndrome; (ii) the Company was aggressively marketing and promoting Acthar as a treatment for these conditions, with a woefully inadequate compliance program; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On September 19, 2012, Aetna Inc. announced that it would limit coverage of Acthar, citing studies that suggest the drug is not medically necessary for indications such as multiple sclerosis that are treated with steroids. On this news, Questcor shares declined $24.17 per share, or nearly 48%, to close at $26.35 per share on September 19, 2012.
On September 24, 2012, Questcor announced a U.S. governmental investigation into the Company's promotional practices. On this news, Questcor shares declined $11.05 per share, or 36%, to close at $19.08 per share on September 24, 2012.
The Pomerantz Firm, with offices in New York, Chicago and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP firstname.lastname@example.orgSource:Pomerantz Grossman Hufford Dahlstrom & Gross LLP