Insys Therapeutics Files Chapter 11 Bankruptcy Protection
Have you suffered losses investing in Insys Therapeutics? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Specialty pharmaceutical company Insys Therapeutics, filed for Chapter 11 bankruptcy protection on June 10, less than a week after reportedly pleading guilty to federal fraud charges and purportedly agreeing to pay $225 million to resolve allegations tied to its opioid painkiller.
The company reportedly said it planned to use the bankruptcy process to arrange a sale of its assets that would allow it to continue operating.
Insys, whose founder and top executives have reportedly been convicted of bribing doctors to prescribe a highly addictive painkiller, Subsys, has allegedly become the first opioid manufacturer to declare bankruptcy after reportedly being charged with massive fines, according to news reports.
In September, Insys reportedly claimed it “faces more than $4 billion in claims from 8,000-plus filings,” and reportedly may not be able to pay the $225 million Department of Justice settlement in full, according to an article in BioPharma Dive.
Recovery of Investment Losses
The problem with biopharmaceutical stocks such as Insys Therapeutics is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy clinical testing trials that yield specific data. If the expected data or end points are not met, the stock can drop drastically.
Without a strong understanding of the company and its basic operations, investors may be looking at serious losses.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk biopharma stocks, like Insys Therapeutics to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Insys Therapeutics, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.