Corcept Leaders Sued Over Drug-Approval Remarks, Stock Sales

Corcept Therapeutics Inc. executives and directors misrepresented a drug candidate’s approval prospects while some of them made $67 million in insider stock sales, an investor alleges.

Shares offloaded by other senior executives brought the total to $97 million in insider sales while the stock price was artificially inflated, Mark LeRiger says on behalf of the company. He filed his derivative suit April 10 in the US District Court for the Northern District of California.

Board members and executives expressed confidence in the evidence supporting the company’s new treatment for patients with Cushing’s syndrome, also called hypercortisolism, LeRiger says. And they ...