Corcept Therapeutics Incorporated (CORT) Accused of Illicit Sales Practices
According to the complaint against Corcept’s officers and directors for breaches of fiduciary duty, insider selling, and violations of the Securities Exchange Act of 1934 between August 2, 2017 and February 5, 2019, Corcept’s only revenue-generating product during this time was Korlym, a cortisol receptor blocker used to control hyperglycemia. In Corcept’s filings with the SEC during this period, Corcept’s officers and directors failed to disclose to investors that the Company had been improperly paying doctors to promote its product and that the specialty pharmacy responsible for 99% of Corcept’s revenue was a related party engaged in illicit sales to artificially inflate Corcept’s revenue. Then, on January 25, 2019, Southern Investigative Reporting Foundation published a report alleging that Corcpet paid doctors to prescribe Korlym for off-label uses. And, on February 5, 2019, Blue Orca Capital published a report alleging that Corcept’s exclusive distributor was an undisclosed related party. As a result of these revelations, Corcept’s public statements appear to be materially false and misleading, which will damage the Company’s credibility and open it up to future damages.
