SAN DIEGO & MENLO PARK, Calif.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Corcept Therapeutics Incorporated (CORT) filed a complaint against the company's officers and directors for breaches of fiduciary duty, insider selling and misappropriation of information, waste of corporate assets, and violations of the Securities Exchange Act of 1934 between August 2, 2017 and February 5, 2019. Corcept is a pharmaceutical company that develops medications to treat severe metabolic, oncologic, and psychiatric disorders by modulating the effect of cortisol. Corcept's drug Korylm is a cortisol receptor blocker used to control hyperglycemia.
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Corcept Therapeutics Incorporated (CORT) Accused of Illicit Sales Practices
According to the complaint, in 2012, Corcept launched its prescription medicine Korlym, which served as Corcept's only revenue-generating product throughout the relevant period. In Corcept's filings with the SEC during this period, Corcept's officers and directors failed to disclose to investors that the Company had been improperly paying doctors to promote its product and that the specialty pharmacy responsible for 99% of Corcept's revenue was a related party engaged in illicit sales to artificially inflate Corcept's revenue. Then, on January 25, 2019, Southern Investigative Reporting Foundation published a report alleging that Corcpet paid doctors to prescribe Korlym for off-label uses. And, on February 5, 2019, Blue Orca Capital published a report alleging that Corcept’s exclusive distributor was an undisclosed related party. As result of these revelations, Corcept's public statements appear to be materially false and misleading, which will damage the Company's credibility and open it up to future damages.
Corcept Therapeutics Incorporated (CORT) Shareholders Have Legal Options
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