Newman Ferrara LLP announces that a class action lawsuit has been filed in the Central District of California against Questcor Pharmaceuticals, Inc. (“Questcor”) (Nasdaq: QCOR) and certain of its executive officers and directors, alleging violations of federal securities laws.
Investors who purchased Questcor securities between April 26, 2011 and September 21, 2012 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than November 26, 2012. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.
Questcor is a biopharmaceutical company providing prescription drugs to treat various medical indications, such as Multiple Sclerosis (“MS”), Nephrotic Syndrome (“NS”), and Infantile Spasms (“IS”). The Complaint alleges that the defendants issued false and/or misleading statements, and failed to disclose material facts, related to the effectiveness of one of its primary drugs, Acthar, as a treatment for MS and NS. The Complaint alleges that the defendants knew, but concealed from the public, that: (1) Questcor lacked clinical evidence to support the use of Acthar for treatment of any indication other than IS; (2) Questcor had engaged in improper tactics to promote the sale and use of Acthar in the treatment of MS and NS; and (3) lacked a reasonable basis to make positive statements about the effectiveness of Acthar. When the truth about Acthar began to publicly emerge on September 19, 2012 and the U.S. government announced on September 24, 2012 that it had initiated an investigation into Questcor’s promotional practices of Acthar, Questcor common stock plummeted 67% in value down to $19.08 per share.
Investors who purchased shares of Questcor stock during the Class Period and lost more than $100,000 are encouraged to contact Newman Ferrara attorney Roy Shimon at firstname.lastname@example.org or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.