An interesting blog post entitled, Investors can Continue to Bring Claims Against KV Pharmaceutical, can be found here. This blog discusses the United States Eighth Circuit Court of Appeals ruling that investors can continue to bring claims against KV Pharmaceutical Co. (KV) for making false or misleading statements to the U.S. Food and Drug Administration (FDA). The 8th Circuit issued its decision on June 4, 2012. The decision can be viewed here. Investors claim they suffered $1.5 billion in losses because KV misled the FDA in its compliance reports, and subsequently shut down its manufacturing operations in 2009.
In March 2010, former KV subsidiary Ethex Corp pleaded guilty to two-felony counts of criminal fraud and agreed to pay $27.6 million in fines and restitution. In 2011, KV's former chief executive, Marc Hermelin, pleaded guilty to misdemeanor violations of the Food, Drug and Cosmetic Act and was sentenced to 30 days in jail and ordered to pay $1.9 million in fines and forfeitures.
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