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The Complaint charges Caraco and certain of the Company's executive officers with violations of federal securities laws. Caraco develops, manufactures, markets and distributes generic and private-label pharmaceuticals to wholesalers, distributors, warehousing and non-warehousing chain drugstores, and managed care providers throughout the United States.
The Complaint alleges that throughout the Class Period defendants' public statements were false and misleading or failed to disclose or indicate, among other things, that: (1) the Company failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; (2) the Company failed to take corrective measures in order to have its manufacturing facilities comply with the FDA's cGMP requirements; (3) the Company had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; (4) the foregoing significantly jeopardized the Company's ability to gain FDA approval of pending new drug applications; and (5), as a result of the above, the Company would have to recall certain products.
On June 25, 2009, the FDA announced that U.S. Marshals had seized drug products manufactured by Caraco from the Company's facilities. According to the FDA, this action followed Caraco's continued failure to meet the FDA's cGMP requirements, which assure the quality of manufactured drugs.
In response to this news, shares of Caraco declined $1.79 per share, or approximately 43%, to close on June 25, 2009, at $2.39 per share, on unusually heavy trading volume.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Caraco securities between May 29, 2008 and June 25, 2009, you have certain rights, and have until September 15, 2009, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, Toll-Free at 888-638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at http://www.howardsmithlaw.com.
SOURCE: Law Offices of Howard G. Smith
Law Offices of Howard G. Smith Howard G. Smith, Esquire 215-638-4847 888-638-4847 howardsmith@howardsmithlaw.com
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