NEW YORK, Oct. 6, 2012
NEW YORK, Oct. 6, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Questcor Pharmaceuticals, Inc. ("Questcor" or the "Company") (NASDAQ: QCOR).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Questcor lacked sufficient clinical evidence to support the use of Acthar for medical problems other than infantile spasms; (2) Questcor had engaged in risky tactics to promote the sale and use of Acthar in the treatment of MS and nephrotic syndrome; and (3) Questcor lacked a reasonable basis to make positive statements about the Company or its outlook, including statements about the effectiveness of and potential market growth for Acthar.
On September 19, 2012, the stock commentary website Citron Research reported that Aetna Inc. ("Aetna"), one of the nation's largest insurers, had recently revised its policy concerning Acthar, which would severely limit coverage of Questcor's primary drug. In Aetna's clinical policy bulletin issued in connection with its review, Aetna reported that studies suggested that the drug is only "medically necessary" for West syndrome, a rare condition that causes infantile spasms, and not for other indications, such as MS, that are treated with steroids.
On this news, Questcor's stock plummeted $24.17 per share to close at $26.35 per share on September 19, 2012, a one-day decline of 48%. Then, on September 24, 2012, Questcor announced in a Form 8-K filed with the SEC that the U.S. government had initiated an investigation into the Company's promotional practices. After this news, Questcor's stock dropped $11.05 per share to close at $19.08 per share on September 24, 2012, a one-day decline of 37%.
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Take ActionIf you purchased Questcor stock or options between April 26, 2011 and September 21, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/QCOR. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Questcor's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLPPR Newswire
Last updated on: 06/10/2012