A press release for a company, IsoRay Medical, has led to the filing of a class action lawsuit.
“IsoRay Medical of Richland says it acted in good faith and met the regulations of the Securities and Exchange Commission when it released a news release that led to a lawsuit.
Plaintiffs in the lawsuit have asked that it be certified as a class action.
The news release, which described results of a study looking at lung cancer treatment with an Isoray medical isotope product, was quickly followed by a near doubling of the stock price under what was heavy trading for the stock.
The news release was issued on May 19, 2015, and the stock price went from $1.62 a share to $3.12 the next day.
But on May 21, 2015, the investment website The Street posted an article with the headline “IsoRay Takes Liberties With Lung Cancer Study Results to Prop Up Stock Price.”” [READ MORE]