WASHINGTON, Dec. 9, 2008 (GLOBE NEWSWIRE) -- Finkelstein Thompson LLP is currently investigating potential shareholder and derivative claims involving KV Pharmaceutical Co. ("KV") (NYSE:KV-A) following the Company's announcement that the filing of its second quarter earnings would be indefinitely delayed due to a continuing investigation into recent financial and operational irregularities. In response to this announcement made on November 13, 2008, the Company's share price dropped almost 60%.
According to various reports, KV's management allegedly failed to disclose that: (1) KV's manufacturing facilities were in disarray resulting in the manufacture of unsafe drug products that would have to be recalled; (2) they improperly failed to recall the Company's unsafe drug products; (3) KV's manufacturing facilities failed to comply with federal regulations, including FDA "Good Manufacturing Practices"; (4) manufacturing disruptions and inefficiencies were resulting in a material backlog of unshipped orders; (5) the Company failed to write off at least $24 million in inventories of discontinued products; and (6) 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.
If you are interested in discussing your rights as a KV shareholder, or have information relating to this investigation, please contact Finkelstein Thompson's Washington, DC offices at (877) 337-1050 or by email at contact@finkelsteinthompson.com.
Finkelstein Thompson LLP has spent over three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. To learn more about Finkelstein Thompson LLP, please visit our web site at www.finkelsteinthompson.com.