Corcept executives sued over drug approval remarks and insider stock sales
Corcept Therapeutics executives and directors were sued over alleged misstatements about a drug candidate’s approval prospects. The suit says insider stock sales totaled $97 million while the stock price was artificially inflated.
Corcept Therapeutics Inc. executives and directors were sued over allegations that they misrepresented a drug candidate’s approval prospects while some of them made $67 million in insider stock sales. Shares offloaded by other senior executives brought the total to $97 million in insider sales while the stock price was artificially inflated, according to an investor who filed a derivative suit April 10 in the US District Court for the Northern District of California.
The investor alleges that board members and executives expressed confidence in the evidence supporting the company’s new treatment for patients with Cushing’s syndrome, also called hypercortisolism. The suit says the executives and directors misrepresented the drug candidate’s approval prospects while insider sales took place.