Kessler Topaz Meltzer & Check, LLP Announces Proposed Partial Settlement of the Insys Therapeutics, Inc. Securities Litigation

RADNOR, Pa., July 20, 2020 /PRNewswire/ --

UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA

Richard Di Donato, Individually and On
Behalf of All Others Similarly Situated,

 

                                Plaintiff,

 

            v.

 

Insys Therapeutics, Inc.; Michael L. Babich;
Darryl S. Baker; and John N. Kapoor,

 

                              Defendants.


No. 16-cv-00302-NVW

CLASS ACTION

 

SUMMARY NOTICE OF (I) PROPOSED SETTLEMENT WITH DEFENDANT
JOHN N. KAPOOR; (II) SETTLEMENT FAIRNESS HEARING; AND
(III) MOTION FOR ATTORNEYS' FEES AND LITIGATION EXPENSES

TO:     All persons and entities who purchased or otherwise acquired Insys Therapeutics, Inc. ("Insys") common stock during the period from March 3, 2015, through January 25, 2016, and were damaged thereby ("Class"). Certain persons and entities are excluded from the Class as set forth in detail in the Stipulation and Agreement of Settlement between Lead Plaintiff and Defendant John N. Kapoor dated July 1, 2020 ("Stipulation") and the Settlement Notice described below.

PLEASE READ THIS NOTICE CAREFULLY;
YOUR RIGHTS WILL BE AFFECTED BY A
CLASS ACTION LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the District of Arizona ("Court"), that the Court-appointed Lead Plaintiff and Class Representative Clark Miller ("Class Representative"), on behalf of himself and the Court-certified Class in the above-captioned securities class action ("Action"), has reached a proposed settlement of the Action with defendant John N. Kapoor ("Defendant Kapoor") for consideration of at least Seven Hundred Thousand Dollars in cash ($700,000) with the potential to increase to up to Ten Million Dollars in cash ($10,000,000) (the "Settlement Consideration") in accordance with the terms and schedule set forth in the Stipulation. If approved, the Settlement will resolve all claims in the Action against Defendant Kapoor only. Please Note: This settlement does not resolve any of the claims asserted against the other defendants in the Action.

A hearing will be held on October 15, 2020 at 9:30 a.m., before the Honorable Neil V. Wake at the Sandra Day O'Connor United States Courthouse, 401 W. Washington St., Phoenix, AZ 85003, Courtroom 401, to determine whether: (i) the proposed Settlement of the Action with Defendant Kapoor should be approved as fair, reasonable, and adequate; (ii) the Action should be dismissed with prejudice against Defendant Kapoor, and the releases specified and described in the Stipulation (and in the Settlement Notice described below) should be entered; (iii) the proposed Plan of Allocation should be approved as fair and reasonable; and (iv) Class Counsel's motion for an award of attorneys' fees and litigation expenses should be approved.

If you are a member of the Class, your rights will be affected by the pending Action and the Settlement of the Action with Defendant Kapoor, and you may be entitled to share in the Settlement Consideration. This notice provides only a summary of the information contained in the detailed Notice of (I) Proposed Settlement with Defendant John N. Kapoor; (II) Settlement Fairness Hearing; and (III) Motion for Attorneys' Fees and Litigation Expenses ("Settlement Notice"). You may obtain a copy of the Settlement Notice, along with the Claim Form, on the website for the Action, www.InsysRXSecuritiesLitigation.com. You may also obtain a copy of the Settlement Notice and the Claim Form by writing to the Claims Administrator at Insys Therapeutics, Inc. Securities Litigation, c/o A.B. Data, Ltd., P.O. Box 170999, Milwaukee, WI  53217; by calling toll free 1-866-905-8102; or by sending an email to info@InsysRXSecuritiesLitigation.com.

If you previously submitted or plan to submit a Claim Form in connection with the settlement of the Action with defendant Darryl S. Baker ("Baker Settlement"), it is not necessary to resubmit a Claim Form for this Settlement. Your Baker Settlement Claim Form will also be processed in connection with this Settlement. If you did not previously submit or are not planning to submit a Claim Form in connection with the Baker Settlement and you are a member of the Class, in order to be eligible to receive a payment under the proposed Settlement with Defendant Kapoor, you must submit a Claim Form postmarked (if mailed), or online, no later than October 10, 2020, in accordance with the instructions set forth in the Claim Form. If you are a Class Member and do not submit a valid Claim Form either in connection with this Settlement or in connection with the Baker Settlement, you will not be eligible to share in the distribution of the net proceeds of the Settlement of the Action with Defendant Kapoor, but you will nevertheless be bound by any releases, judgments, or orders entered by the Court in the Action.

Any objections to the proposed Settlement of the Action with Defendant Kapoor, the proposed Plan of Allocation, and/or Class Counsel's motion for an award of attorneys' fees and litigation expenses, must be filed with the Court and delivered to Class Counsel and Defendant Kapoor's Counsel such that they are received no later than September 24, 2020, in accordance with the instructions set forth in the Settlement Notice. As this Class was previously certified and, in connection therewith, Class Members had the opportunity to exclude themselves from the Class, the Court, in connection with the Baker Settlement, exercised its discretion not to allow a second opportunity for exclusion in connection with the settlement proceedings.

PLEASE DO NOT CONTACT THE COURT, THE CLERK'S OFFICE, DEFENDANT KAPOOR, OR DEFENDANT KAPOOR'S COUNSEL REGARDING THIS NOTICE. All questions about this notice, the Settlement of the Action with Defendant Kapoor, or your eligibility to participate in the Settlement with Defendant Kapoor should be directed to the Claims Administrator or Class Counsel.

Requests for the Settlement Notice and Claim Form should be made to the Claims Administrator:

Insys Therapeutics, Inc. Securities Litigation
c/o A.B. Data, Ltd.
P.O. Box 170999
Milwaukee, WI  53217

1-866-905-8102
info@InsysRXSecuritiesLitigation.com
www.InsysRXSecuritiesLitigation.com

All other inquiries should be made to Class Counsel:

KESSLER TOPAZ MELTZER
& CHECK, LLP

Johnston de F. Whitman, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
Telephone: (610) 667-7706
Facsimile: (610) 667-7056

-and-

Jennifer L. Joost, Esq.
One Sansome Street, Suite 1850
San Francisco, CA 94104
Telephone: (415) 400-3000
Facsimile: (415) 400-3001
info@ktmc.com
www.ktmc.com

DATED:  July 20, 2020

BY ORDER OF THE COURT


United States District Court


District of Arizona

 

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SOURCE Kessler Topaz Meltzer & Check, LLP

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