Stockholders v Caraco Pharmaceutical Laboratories, Ltd.
Stockholders File Lawsuit Against Caraco Pharmaceutical Laboratories, Ltd.
According to a press release dated July 17, 2009, The Complaint charges that Caraco and certain of its officers and directors violated federal securities laws. Specifically, it is alleged that defendants failed to disclose the following: (i) Caraco failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; (ii) Caraco failed to take corrective measures in order to have its manufacturing facilities comply with the FDA's cGMP requirements; (iii) Caraco had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; (iv) that the foregoing significantly jeopardized the Company's ability to gain FDA approval of pending new drug applications; and (v) as a result of the above, Caraco would have to recall certain products.
On June 25, 2009, the FDA announced that U.S. Marshals had seized drug products from the Company's facilities. According to the FDA, this action followed Caraco's continued failure to meet the FDA's cGMP requirements. On this news, shares of Caraco fell approximately 43% to $2.39 per share.
If you bought Caraco Pharmaceutical Laboratories, Ltd. securities and would like to obtain information about the Caraco Pharmaceutical Laboratories, Ltd. lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
