DENVER, Dec. 5, 2008 (GLOBE NEWSWIRE) -- 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.