Robbins Umeda LLP Announces Investigation of KV Pharmaceutical Company

Robbins Umeda LLP has commenced an investigation into possible mismanagement of KV Pharmaceutical Company ("KV" or the "Company") (NYSE: KV-A). KV, a fully-integrated specialty pharmaceutical company, develops, manufactures, acquires, and markets technology-differentiated branded and generic/non-branded prescription pharmaceutical products. The Company is based in St. Louis, Missouri.

Robbins Umeda LLP's investigation of KV concerns questionable statements issued by the Company between February 2008 and November 2008 regarding its compliance with federal regulations concerning the manufacture and marketing of certain generic drug products, as well as the Company's current and future financial prospects. Among other things, it appears that the Company failed to disclose that: (1) manufacturing disruptions and inefficiencies were resulting in a material backlog of unshipped customer orders, eroding the Company's revenues and earnings; (2) KV's management engaged in misconduct by failing to recall the Company's unsafe drug products; and (3) KV's financial statements failed to comply with Generally Accepted Accounting Principles.

The Company's internal review thus far indicates that this potential mismanagement has been occurring since at least 2005. On November 13, 2008, the Company announced it was unable to file its Form 10-Q for the quarter that ended September 30, 2008, due to a continuing investigation by the Company's Audit Committee into allegations of management misconduct concerning recalls of the Company's drug products. Following this statement, the price of KV common stock fell from $14.26 per share to $5.90 per share – a drop of nearly 59%.

A lawsuit alleging violations of the Securities Exchange Act of 1934 has been filed on behalf of shareholders who purchased or otherwise acquired KV stock between June 15, 2004 and January 23, 2009, seeking recovery from KV and certain of its officers for the damages they have suffered as a result of the officers' mismanagement of the Company. Securities class actions like this can potentially cause additional damage to the Company.

If you purchased KV stock prior to February 2008, continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by e-mail at llevi@robbinsumeda.com.

Robbins Umeda LLP is a California-based law firm with significant experience representing investors in shareholder derivative actions, securities class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com.

Advertisement