IsoRay, Inc. (NYSEMKT:ISR) Just Got Into a Lawsuit Spiral

[[tagnumber 0]][[tagnumber 1]]It has been three weeks since the once May 20 press release pushed the stock IsoRay, Inc. (NYSEMKT:ISR) up to the sky, only to crumble big time on the very next day – a blow ISR seems unlikely to recover from any time soon.[[tagnumber 2]] [[tagnumber 0]]Just like any other biopharmaceutical company out there, IsoRay‘s main goal is to develop novel efficient drugs to cover medical needs that have so far remained unmet. IsoRay‘s mission, in particular, revolves around finding new ways to cover various types of cancer using the Cesium–131 radioisotope in brachytherapy and internal radiation. On May 20, the company announced what CEO Dwight Babcock dubbed ‘outstanding patient outcomes‘ from Cesium–131‘s first major clinical study for the treatment of non–small cell lung cancer. What the announcement failed to provide was a comparison between the results of the treatment with Cesium–131 and those of other forms of radiation therapy. As it would turn out only a day later, the differences would only amount to a few percentage points, i.e they would prove statistically insignificant.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]Unfortunately for many investors, the damage had already been done. They took the bait and the stock doubled in value on a record–breaking daily volume in excess of 50 million. The grave disappointment followed on the next day after the real facts were brought to the surface biting a huge chunk of ISR‘s newly–elevated market value, which led to grand overnight losses.[[tagnumber 2]] [[tagnumber 0]]This triggered a gargantuan avalanche of investigations nationwide and it soon became clear that a myriad of class action lawsuits would be filed in the following days. As of today, a dozen law firms have declared pending lawsuits. The only missing link as of today is the election of a lead plaintiff, which is why the most recent company–related announcements have consisted of criculation letters reminding concerned investors of the July 21 deadline for picking up a lead plaintiff.[[tagnumber 2]] [[tagnumber 0]]How the series of lawsuits against IsoRay will pan out will be evident in the months to come. What seems highly probable, however, is that ISR shares have seen better days on the charts and it will take a while before they can revisit them.[[tagnumber 2]]