SAN DIEGO, June 8, 2015 /PRNewswire/ -- 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
djr@rgrdlaw.com. 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.
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SOURCE Robbins Geller Rudman & Dowd LLP