Company: Corcept Therapeutics Incorporated
Class Period: August 2, 2017 — February 5, 2019
Court: U.S.D.C. – Northern District of California
A shareholder class action lawsuit has been filed against Corcept Therapeutics Incorporated (“Corcept”) on behalf of investors who purchased shares of the Company’s stock between August 2, 2017 and February 5, 2019 (the “Class Period”).
The complaint alleges that the defendants made false and misleading statements and/or failed to disclose material adverse information to investors during the Class Period concerning the Company’s business, operations and prospects. Specifically, the defendants failed to disclose or indicate that: (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 harmacy was a related party; (iv) that the Company artificially inflated its revenue and sales using illicit sales practices through a related party; and (v) that such practices are reasonably likely to lead to regulatory scrutiny.
According to the complaint, on January 25, 2019, Southern Investigative Reporting Foundation (“SIRF”) published a report alleging that Corcept paid doctors to prescribe its drug, Korlym, for off-label uses. Following this news, shares of the Company’s stock fell $1.52 per share, or over 11% in value, to close on January 25, 2019 at $12.29 per share.
Then, on January 31, 2019, “likely due to the increased scrutiny of its illicit sales practices, the Company forecast a sharp slowdown in sales of Korlym, projecting full-year 2019 revenue of $285 million to $315 million while investors and analysts had expected approximately $328 million.” Following this news, shares of the Company’s stock fell an additional $1.15 per share, or more than 10% in value, to close on February 1, 2019 at $10.03 per share.
Corcept stockholders who purchased shares of the Company’s stock before February 5, 2019 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, for additional information about this action and their legal rights and options.