ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST ISORAY, INC.
June 8, 2015 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/isoray/) today announced that a class action has been commenced in the United States District Court for the Eastern District of Washington on behalf of purchasers of IsoRay, Inc. (“IsoRay”) (NYSE:ISR) publicly traded securities during the period between May 20, 2015 and May 21, 2015 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 22, 2015. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/isoray/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges IsoRay and certain of its officers and directors with violations of the Securities Exchange Act of 1934. IsoRay develops, manufactures and sells isotope-based medical products and devices for the treatment of cancer and other malignant diseases in the United States. The Company produces Proxcelan Cesium-131 brachytherapy seeds for the treatment of prostate, lung, head and neck, colorectal, brain, pelvic/abdominal, and gynecological cancers, as well as ocular melanoma.
The complaint alleges that defendants made false and misleading statements in a press release issued before the markets opened on May 20, 2015 regarding the results of the first major peer reviewed study showing improved results using IsoRay's Cesium-131 seeds in the treatment of lung cancer. The press release reported what the Company termed “outstanding” results in the treatment of lung cancer, including a 96% success rate in local control (meaning control of the tumor in the lung) and 100% survival at five years in high risk patients. The Company’s CEO stated that they were “extremely excited to have [their] Cesium-131 isotope seeds and mesh used in the treatment of non-small cell lung cancers with such outstanding patient outcomes,” and that “[p]ublished studies are the final step to commercialization . . . This latest publication . . . [is] proving Cesium-131’s time is now.” As a result of these statements, IsoRay’s stock price increased from $1.61 per share to $3.12 per share in one day.
Then, later in the day on May 21, 2015, TheStreet.com published an article asserting that IsoRay had selectively edited the findings from the study disclosed in its May 20, 2015 press release to make its Cesium-131 product seem better than it really was and to prop up its stock price. The article stated that IsoRay “does a poor job selling radioactive ‘seeds’ for use in cancer radiation therapy. To make up for the inability to deliver revenue growth – and prop up its stock price – IsoRay issues a lot of promotional press releases, some of which take liberties with clinical data using clever, selective editing.” The article went on to state that the study authors “do not endorse IsoRay’s Cesium-131 or call the results ‘outstanding.’ They conclude that early-stage lung cancer patients may benefit from surgery plus Cesium-131 or an alternative form of radiation therapy compared to surgery alone.” On this news, the price of IsoRay shares fell $1.77 per share from the stock’s intraday high trading price of $3.79 per share to close at $2.02 per share on May 21, 2015, a one-day decline of 35%, on volume of 52.8 million shares. The stock subsequently dropped to below $1.60 per share, essentially the same price it had traded at prior to the May 20, 2015 press release.
Plaintiff seeks to recover damages on behalf of all purchasers of IsoRay publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked number one in the number of shareholder class action recoveries in ISS’s SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com for more information.