Investors who are current long term stockholders in Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR)
Questcor primary product is H.P. Acthar Gel, an injectable drug that is approved by the U. S. Food and Drug Administration (“FDA”) for the treatment of several conditions, including multiple scelorosis, nephrotic syndrome and infantile spasms.
The plaintiff alleges that certain defendants drove up the stock price of Questcor by making improper statements about the purported board effectiveness of the H.P. Acthar Gel. The plaintiff claims that while causing the company to make improper statements that inflated its stock price, certain of the company’s officers and directors were selling over $107 million worth of their stock in a massive and coordinated fashion. Furthermore, so the plaintiff, at the same time as these defendants were massively selling off their stock, they caused the company to repurchased $185 million of its own stock on the basis that it was undervalued.
Then on September 14, 2012 Aetna Inc. issued a Clinical Policy Bulletin stating that based on review of medical studies Acthar was "not medically necessary" for certain conditions for which it has been prescribed and as a result Aetna would limit the coverage of H.P. Acthar.
On September 24, 2012, Questcor Pharmaceuticals, Inc. disclosed in a filing with the Securities and Exchange Commission that on September 21, 2012, Questcor Pharmaceuticals, Inc. became aware of a U.S. government investigation involving Questcor Pharmaceuticals’
Shares of Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR)
On October 19, 2012, NASDAQ:QCOR closed at $24.99 per share, less than 50% of its 52 week High of $58.91 per share..
Those who are current long term stockholders in Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR)