NEW YORK, June 13, 2005 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of New Jersey on behalf of all purchasers of Able Laboratories, Inc. ("Able" or the "Company") (Nasdaq:ABRX) securities between October 30, 2002 and May 18, 2005, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Able's financial results and business prospects. Specifically, the complaint alleges that Able failed to disclose that: (a) the Company's product testing procedures failed to meet standard industry practices and good manufacturing practices established by the FDA; (b) the Company was faced with potentially crippling liabilities and fines stemming from its breaches of good manufacturing practices, which also jeopardized its current drug offerings and the likelihood that drugs in development would gain FDA approval; (c) the Company's purported success stemmed, in material part, from cost savings achieved from cutting corners and a failure to institute a system of operational controls to ensure compliance with applicable regulations and good manufacturing practices. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On May 19, 2005, however, the Company announced that it had identified apparent departures from standard operating procedures with respect to certain laboratory testing practices and that as a result of these observations, the Company will be recalling additional products in the future. In response to this disclosure, shares of Able fell $18.37 per share or 75%, to close at $6.25 per share.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Able securities between October 30, 2002 through May 18, 2005, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
If you purchased Able securities during the Class Period, you may, not later than July 22, 2005, move the court to serve as lead plaintiff of the class, if you so choose. In order 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, please contact: