DENVER, Dec. 5, 2008 (LAWFUEL) — Dyer & Berens LLP today
announced that it has commenced a class action lawsuit in the United
States District Court for the Eastern District of Missouri on behalf of
purchasers of KV Pharmaceutical Company (“KV” or the “Company”) 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 period between February 15, 2008 and November 12,
2008 (the “Class Period”).
If you wish to serve as a lead plaintiff, you must move the Court no
later than February 2, 2009. If you wish to discuss this action or have
any questions concerning this notice or your rights or interests,
please contact plaintiff’s counsel, Jeffrey A. Berens, Esq. at (888)
300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any
member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
In the class action complaint, the plaintiff alleges that, during the
Class Period, defendants made false and 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. For example, defendants allegedly failed to
disclose that: KV’s manufacturing facilities were in disarray resulting
in the manufacture of unsafe drug products that would have to be
recalled; KV’s management improperly failed to recall the Company’s
unsafe drug products; KV’s manufacturing facilities failed to comply
with federal regulations, including FDA “Good Manufacturing Practices;”
manufacturing disruptions and inefficiencies were resulting in a
material backlog of unshipped orders; the Company 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.
Then, on November 13, 2008, KV announced that it would be unable to
file its 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. In response, the price of KV
common stock plummeted nearly 59% on extremely heavy volume.
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.
