Recalls, Investigation Result In KV Investors' Suit

Law360, New York (December 3, 2008, 12:00 AM EST) -- Investors in KV Pharmaceutical Co. have alleged that the company knowingly made materially false statements about its earnings and product lines throughout 2008, and that they suffered severe economic damage as a result.

In a complaint filed Tuesday in the U.S. District Court for the Eastern District of Missouri, the potential investor class claims that a torrent of information, including drug recalls, an internal ethics investigation, the delay of regulatory filings and the subsequent withdrawal of rosy 2009 revenue forecasts, caused KV stock to lose more...
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