Cohen Milstein Announces That It Has Filed A Securities Class Action Lawsuit Against KV Pharmaceutical Company
WASHINGTON--(BUSINESS WIRE)--The law firm of Cohen Milstein Sellers & Toll PLLC has filed a lawsuit on behalf of its client and a proposed class of persons who purchased the securities of KV Pharmaceutical Company between February 15, 2008 and November 12, 2008 (the "Class Period"). The proposed class would be comprised of purchasers of KV's Class A Common Stock (NYSE: KV-A), Class B Common Stock (NYSE: KV-B) and 7% cumulative convertible Preferred Stock (Symbol: KVPHP or CUSIP: 482740305) during the Class Period. The lawsuit was filed in the United States District Court for the Eastern District of Missouri.
The Complaint filed in the lawsuit charges that KV and certain of its officers and directors violated the Securities Exchange Act of 1934 by making false and misleading statements to investors and by failing to disclose to investors information that they were required to disclose. According to the Complaint, during the Class Period, defendants failed to disclose: (i) that KV's manufacturing facilities were in disarray, resulting in the manufacture of unsafe drug products; (ii) that KV's management engaged in misconduct by failing to recall the Company's unsafe drug products; (iii) that KV's manufacturing facilities failed to comply with federal regulations; (iv) that manufacturing disruptions and inefficiencies had caused a material backlog of unshipped customer orders, eroding the Company's revenues and earnings; (v) that the Company failed to write off at least $24 million in inventories of discontinued products, seized by the U.S. Attorney for the Eastern District of Missouri because of defendants' violation of FDA enforcement notices; (vi) that KV's post-January 2008 sales of generic drugs had been negatively impacted by material price erosion following the expiration of the company's exclusive sales period for the drug metoprolol succinate; and (vii) that KV's financial statements failed to comply with Generally Accepted Accounting Principles.
On November 13, 2008, KV unexpectedly announced that it would be unable to file its SEC Form 10-Q for the quarter ended September 30, 2008 due to a continuing investigation by the Company's Audit Committee into allegations of management misconduct concerning recalls of the Company's drug products. Following this statement, the price of KV common stock fell from $14.26 per share to $5.90 per share-a drop of nearly 59%-on volume of more than 6.6 million shares, 33 times the stock's average trading volume.
If you purchased or otherwise acquired KV securities between February 15, 2008 and November 12, 2008 you may, no later than February 2, 2009, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class you need not take any action at this time.
Cohen Milstein has significant experience in prosecuting investor class actions. The firm has offices in Washington, D.C., London, New York, Philadelphia and Chicago and is active in major litigation pending in federal and state courts throughout the nation. The firm's website is www.cohenmilstein.com.
Cohen Milstein's reputation for excellence has been recognized on repeated occasions by courts which have appointed it to lead counsel positions in complex litigation. The firm has taken a lead role in numerous important cases on behalf of defrauded investors and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.