NEW YORK, Aug. 26, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Impax Laboratories, Inc. ("Impax" or the "Company") (Nasdaq:IPXL) securities between May 20, 2013 through July 28, 2014, inclusive (the "Class Period").
The class action alleges that the Company and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased Impax stock during the Class Period, you may, no later than October 13, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
The complaint alleges that during the class period, Impax made materially false and misleading statements regarding quality control matters at the Company's Taiwan production facility. Specifically: (1) the Company failed to maintain proper quality control and manufacturing practices at its Taiwan facility in violation of current Good Manufacturing Practices ("cGMP"); (2) the manufacturing deficiencies at the Taiwan facility could have a material adverse impact on the Company's ability to successfully launch its new drug, RYTARY; (3) the manufacturing deficiencies at the Taiwan facility jeopardized the Company's ability to manufacture, sell, and distribute generic pharmaceutical products; and (4) based upon the above, Defendants lacked a reasonable basis for their positive statements about the Company and its outlook, including statements about its ability to launch RYTARY.
On July 29, 2014, Impax announced that the Food and Drug Administration (the "FDA") completed an inspection of its Taiwan facility, including a Pre-Approval Inspection for RYTARY and a general good manufacturing practices inspection, and found "ten inspectional observations," or deficiencies, including invalidated equipment being used in the drug manufacturing process and the failure to conduct a thorough review of failed batches and reject drug products that did not conform to specifications. On the same day, Impax filed a Form 8-K with the Securities and Exchange Commission providing a redacted version of the FDA's inspectional observations form. Following this news, the price of Impax stock fell $4.27 per share, or 15.23% to close at $23.76 per share on July 29, 2014.
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