Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action lawsuit in the United States District Court, Central District of California, on behalf of all persons who purchased the common stock of Questcor Pharmaceuticals, Inc. (“Questcor” or the “Company”) [NASDAQ: QCOR], or purchased Questcor call options, or sold Questcor put options between April 26, 2011 and September 21, 2012, inclusive (the “Class Period”), against the Company and certain of the Company’s officers, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
The case name is styled Danon v. American Superconductor Corp., et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
During the Class Period, Questcor issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, business prospects, and financial condition. As a result of these materially false and misleading statements, the prices of the Company’s securities were artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.
Questcor’s primary product is H.P. Acthar ® Gel (“Acthar”), a sixty year old drug, which it provides for a variety of indications. Questcor made repeated false and misleading statements concerning the efficacy of Acthar, the potential for Acthar to be prescribed for additional ailments, the controversial marketing of Acthar, and the Company’s resulting growth prospects. What transpired has proven to be a scheme on behalf of Company insiders to inflate the stock price by making false and misleading statements to the investing public in order to liquidate their personal holdings at elevated prices, netting insiders in excess of $100 million.The stock plummeted 48% on September 19, 2012 when Citron Research reported that Aetna had issued a "clinical policy bulletin" stating it considers Acthar medically necessary to treat infantile spasms, but not medically necessary for certain other uses, including conditions that can be treated by corticosteroids. The stock plummeted another 37% on September 24, 2012 when Questcor filed a Form 8-K stating it had become aware of a U.S. government investigation involving the Company’s promotional practices.