Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against K-V Pharmaceutical Company
October 31 2011 - 8:30PM
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 Missouri on behalf of a class
consisting of all persons or entities who purchased the securities
of K-V Pharmaceutical Company (“K-V Pharmaceutical” or the
“Company”) (NYSE:KV-A) (NYSE:KV-B), between February 14, 2011 and
April 4, 2011, 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
shareholders@glancylaw.com, or visit our website at
http://www.glancylaw.com.
The Complaint charges K-V Pharmaceutical and certain of the
Company’s executive officers with violations of federal securities
laws. K-V Pharmaceutical is a specialty pharmaceutical company
engaged in the acquisition, development, manufacture and marketing
of branded and generic/non-branded prescription pharmaceutical
products in the United States, primarily focusing on women’s
healthcare. The Complaint alleges that during the Class Period
defendants issued false and/or misleading statements concerning the
Company’s business and financial prospects. Specifically, the
Complaint alleges that defendants misrepresented that the Food and
Drug Administration (FDA) had granted K-V Pharmaceutical the
exclusive distribution rights over “Makena,” a drug used to prevent
miscarriages, and that the FDA would enforce those rights by
preventing K-V Pharmaceutical’s competitors from distributing
generic formulations of the drug. The Complaint further alleges
that defendants failed to disclosed that the drug’s $1,500 price
actually would reduce the availability of Makena to low-income and
other at-risk groups.
On March 17, 2011, U.S. Senators Amy Klobuchar and Sherrod Brown
issued a press release regarding a letter they had sent to the
Federal Trade Commission urging the agency to launch an
investigation into potentially anti-competitive behavior related to
the dramatic increased in Makena’s price. Following this news, K-V
Pharmaceutical’s A-series stock dropped $1.14, from the previous
day’s closing price of $9.64, to close at $8.50 per share on March
17, 2011.
On April 1, 2011, the Company announced a 55% reduction in
Makena’s list price. Then, on April 4, 2011, Bloomberg published an
article disclosing that even with the recently announced price
reduction, prescribing physicians would not recommend Makena to
their patients. Citing interviews with several physicians,
Bloomberg reported that the hostility generated by Makena’s initial
price had created a barrier to using K-V Pharmaceutical’s Makena as
there was already a cheaper alternative available that the FDA
stood behind.
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 October 19, 2011, 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, 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, by e-mail to shareholders@glancylaw.com, or
visit our website at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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