Corcept Therapeutics, Inc. (CORT)

[jgrabar]

On 8/24/21, a class action survived a motion to dismiss and that action is now in settlement mediation. According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Corcept had improperly paid doctors to promote its drug Korlym; (2) Corcept aggressively promoted Korlym for off-label uses; (3) Corcept’s sole specialty pharmacy was a related party; (4) Corcept artificially inflated its revenue and sales using illicit sales practices through a related party; (5) such practices were reasonably likely to lead to regulatory scrutiny; and (6) as a result, defendants’ positive statements about Corcept’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

Longer term holders may be able to seek corporate governance reforms and an incentive award where appropriate.

to learn more, contact [e-mail]