NEW YORK--()--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.
In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiffs and the other members of the Class relied, to their detriment, on the integrity of the market price of Questcor common stock. Had plaintiff and the other members of the Class known the truth, they would not have purchased Questcor Securities (as described above), or would not have purchased them at the inflated prices that were paid.
If you purchased Questcor securities during the Class Period, you may request that the Court appoint you as lead plaintiff by November 26, 2012. 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via e-mail at email@example.com or visit our website at www.whafh.com. All e-mail correspondence should make reference to Questcor.