Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Caraco Pharmaceutical Laboratories, Ltd., Announces Class Action Lawsuit and Seeks to Recover Losses
LOS ANGELES--(BUSINESS WIRE)--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Eastern District of Michigan on behalf of a class consisting of all persons or entities who purchased the securities of Caraco Pharmaceutical Laboratories, Ltd. ("Caraco" or the "Company") (AMEX:CPD), between May 29, 2008 and June 25, 2009, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [email protected], or visit our website at http://www.glancylaw.com.
The Complaint charges Caraco and certain of the Company's executive officers with violations of federal securities laws. Caraco is engaged primarily in the business of developing, manufacturing, marketing and distributing generic and private-label pharmaceuticals to the nation's largest wholesalers, distributors, warehousing and non-warehousing chain drugstores and managed care providers, throughout the U.S. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Caraco's business, operations, and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate, among other things, the following: (1) that the Company failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; (2) that the Company failed to take corrective measures in order to have its manufacturing facilities comply with the FDA's cGMP requirements; (3) that the Company had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; (4) that the foregoing significantly jeopardized the Company's ability to gain FDA approval of pending new drug applications; and (5) as a result of the above, that the Company would have to recall certain products.
On June 25, 2009, the FDA announced that U.S. Marshals had seized drug products manufactured by Caraco from the Company's facilities. According to the FDA, this action followed Caraco's continued failure to meet the FDA's cGMP requirements, which assure the quality of manufactured drugs. The FDA stated that through the seizure it sought to immediately stop the Company from further distributing drugs until there is assurance that Caraco complies with good manufacturing requirements. On this news, shares of Caraco declined $1.79 per share, or approximately 43%, to close on June 25, 2009, at $2.39 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to [email protected].