RADNOR, Pa., Oct. 4, 2012 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of purchasers of the securities of Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) ("Questcor" or the "Company"), who purchased or otherwise acquired Questcor securities between April 26, 2011 and September 21, 2012, inclusive (the "Class Period"). If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases.
The Complaint charges Questcor and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Questcor is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. Questcor's primary product is H.P. Acthar Gel (repository corticotropin injection) ("Acthar").
The Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Questcor lacked clinical evidence to support the use of Acthar for indications other than infantile spasms; (2) that Questcor had engaged in questionable promotional practices in relation to the sale and use of Acthar in the treatment of MS and nephrotic syndrome; and (3) that, as a result of the foregoing, Questcor lacked a reasonable basis to make positive statements about the Company or its outlook, including statements about Acthar's efficacy, potential growth, and how it "can truly be considered a pipeline within a drug."
Questions regarding Acthar's efficacy and Questcor's aggressive promotion of the drug began to arise in January 2011. Specifically, in response to news that TheStreetSweeper.org would publish a two part investigation regarding the Company's marketing and business practices, the Company's stock declined $6.20 per share, or 15 percent, to close on January 11, 2012 at $35.34 per share, on unusually heavy trading volume. However, the defendants vehemently denied allegations that the Company engaged in improper conduct, which maintained the artificial inflation of the Company's stock price.
On September 19, 2012, it was announced that Aetna Inc. ("Aetna"), one of country's largest insurance companies, had revised its policy concerning Acthar, severely limiting coverage for the drug. Following a review of the 19 indications that the FDA had approved for Acthar, Aetna determined that the only "medically necessary" indication for Acthar is infantile spasms. As Aetna typically only reimburses for drugs that are deemed medically necessary, the treatment of infantile spasms thus became the only reimbursable indication for Acthar from Aetna. According to an Aetna spokesperson, Aetna's "previous position was that [Acthar] was a last-resort treatment…. [Aetna] now state[s] that [Acthar] is not medically necessary because there is no clinical evidence that the drug is more effective than steroids." Upon the release of this news, shares of the Company's stock declined $24.17 per share, or almost 48 percent, to close on September 19, 2012 at $26.35 per share, again on heavy trading volume.
Finally, on September 24, 2012, Questcor disclosed that the U.S. government had initiated an investigation into the Company's promotional practices. On this news, shares of the Company's stock declined an additional $11.05 per share, or almost 37%, to close at $19.08 per share on September 24, 2012, also on heavy trading volume.
Members of the class may, not later than November 26, 2012, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts 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 of whether or not to serve as a lead plaintiff. Any member of the purported 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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT: Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
SOURCE Kessler Topaz Meltzer & Check, LLP