Labaton Sucharow LLP Filed a Class Action Lawsuit Against KV Pharmaceutical Company -- KV-A, KV-B
NEW YORK, Jan. 21, 2009 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on January 21, 2009 in the United States District Court for the Eastern District of Missouri, on behalf of purchasers of the securities of KV Pharmaceutical Company ("KV" or the "Company") (NYSE:KV-A) (NYSE:KV-B) between May 31, 2007 and November 12, 2008, inclusive (the "Class Period"). The complaint names KV, Marc S. Hermelin, Ronald J. Kanterman, and Richard H. Chibnall as defendants (collectively, "Defendants"). The complaint alleges that during the Class Period, Defendants violated the Securities Exchange Act of 1934 by issuing various materially false and misleading statements about KV's compliance with federal regulations pertaining to the manufacture and marketing of certain generic drugs, as well as KV's financial well-being, business operations and prospects, which had the effect of artificially inflating the market price of the Company's securities.
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/KV-Pharma.cfm.
The complaint alleges that during the Class Period, Defendants violated the Securities Exchange Act of 1934 by issuing various materially false and misleading statements about KV's compliance with federal regulations pertaining to the manufacture and marketing of certain generic drugs, as well as KV's financial well-being, business operations and prospects, which had the effect of artificially inflating the market price of the Company's securities.
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/KV-Pharma.cfm.
The complaint alleges, inter alia, that the Defendants made materially false and misleading statements because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that KV's manufacturing facilities were in disarray, resulting in the manufacture of unsafe drug products that would have to be recalled due to the fact that they may contain oversized tablets; (2) that KV's management engaged in misconduct by failing to recall the Company's unsafe drug products; (3) that KV's manufacturing facilities failed to comply with federal regulations including FDA requirements and guidelines, generally referred to as current "Good Manufacturing Practices"; (4) that manufacturing disruptions and inefficiencies were resulting in a material backlog of unshipped customer orders thus further eroding the Company's revenues and earnings; (5) 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 due to defendants' violation of FDA enforcement notices; (6) that KV's post-January 2008 sales of generics were being negatively impacted by material price erosion following the expiration of the Company's exclusive sales period for the drug metoprolol succinate; (7) that KV's financial statements failed to comply with GAAP; and (8) that, based on the foregoing, Defendants' statements concerning the Company's current and future financial prospects were lacking in a reasonable basis when made and therefore materially false and misleading when made.