KV Pharmaceutical Company is likely to face a class action lawsuit from the purchasers of its common stock during the period between February 15, 2008 and November 12, 2008. Dyer & Berens LLP today announced the class action lawsuit in the United States District Court for the Eastern District of Missouri.
The lawsuit charges the company of making misleading statements about KV’s compliance with federal regulations and its financial prospects, resulting in the artificial inflation of the prices for its publicly-traded securities.
The Company, for example failed to write off at least $24 million in inventories of discontinued products; 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 one of its drugs; KV’s financial statements failed to comply with GAAP; and as a result of the foregoing, defendants lacked a reasonable basis for their statements about KV’s financial prospects.
Plaintiff seeks to recover damages on behalf of purchasers of KV securities during the Class Period. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm’s extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.
Source: Marketwatch
Filed under Class Action, Shareholder Lawsuit | Tags: Cases, Damages, Dyer & Berens LLP, fraud, KV Pharmaceutical Company, KV's compliance, Litigation, Marketwatch, plaintiff, Private Securities Litigation Reform Act, publicly-traded securities | Comment Below
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