NEW YORK--(BUSINESS WIRE)--
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Corcept Therapeutics Incorporated (“Corcept” or the “Company”) (NASDAQ: CORT) securities during the period from August 2, 2017 through February 5, 2019 (the “Class Period”). Investors have until May 13, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Corcept failed to disclose to investors: (i) that the Company had improperly paid doctors to promote its drug Korlym; (ii) that the Company aggressively promoted Korlym for off-label uses; (iii) that the Company’s sole specialty pharmacy was a related party; (iv) that the Company artificially inflated its revenues and sales using illicit sales practices through a related party; and (v) that such practices are reasonably likely to lead to regulatory scrutiny.
On January 25, 2019, Southern Investigative Reporting Foundation published a report alleging that Corcept paid doctors to prescribe its drug Korlym for off-label uses. On this news, Corcept’s stock price fell $1.52 per share, approximately 11%, to close at $12.29 per share on January 25, 2019.
On January 31, 2019, Corcept forecast a sharp slowdown in sales of Korlym, projecting full-year 2019 revenue of $285 million to $315 million, significantly lower than investor and analyst expectations of $328 million. On this news, Corcept’s stock price fell $1.15 per share, approximately 10.3%, to close at $10.03 per share on February 1, 2019.
On February 5, 2019, Blue Orca Capital published a report alleging that Corcept’s “sole specialty pharmacy and exclusive distributor is an undisclosed related party” and that the relationship “creates a material risk that the Company is using its captured pharmacy to boost sales, hide losses, or engage in other financial shenanigans.”
If you acquired Corcept securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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