Law Offices of Howard G. Smith, representing investors of Caraco
Pharmaceutical Laboratories, Ltd. (“Caraco” or the “Company”)(AMEX:CPD),
has filed a class action lawsuit in the United States District Court for
the Eastern District of Michigan on behalf of a class (the “Class”)
consisting of all persons or entities who purchased the securities of
Caraco between May 29, 2008 and June 25, 2009, inclusive (the “Class
Period”).
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.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
