IsoRay is the subject of multiple lawsuits alleging the company made misleading statements concerning the clinical performance of its Cesium 131 cancer treatment.
At least 3 different shareholders filed putative class-action lawsuits against IsoRay claiming that the company made false statements about a clinical study of Cesium 131.
IsoRay is accused of issuing misleading and insincere statements regarding its clinical trial of its Cesium 131 brachytherapy seeds ability to treat cancer. They claimed that Cesium 131 had a 100% survival rate at 5 years in high-risk patents and a 96% success rate in local tumor control.
Websites like TheStreet.com criticized IsoRay’s claims and suggested that the company may be inflating its stock value. MassDevice.com states, “IsoRay shares fell 35.3% to a $2.02-per-share close May 21 and were back to $1.51 apiece today.”
The lawsuits were filed in federal courts in Eastern Washington and Central California.
This is an excerpt of one of the lawsuits: “As a result of defendants’ false statements, IsoRay securities traded at artificially inflated prices during the class period. However, after the above revelations seeped into the market, the company’s shares were hammered by massive sales, sending the company’s stock price down to where it had traded at prior to the May 20, 2015 press release, causing economic harm and damages to Class members.”