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Thursday, November 3, 2011

KV Pharmaceutical Smacked With Class-Action Lawsuit

Posted By on Thu, Nov 3, 2011 at 2:10 PM

Big beard, big problems: KV's former CEO Marc Hermelin - IMAGE VIA
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  • Big beard, big problems: KV's former CEO Marc Hermelin
As if KV Pharmaceutical wasn't roiling with enough intrigue already: In addition to criminal convictions, a wave of firings, bickering executives, and legal wrangling, the Bridgeton-based drug company now must defend itself against a class-action lawsuit.

The suit, filed yesterday in federal court, is being brought by folks who purchased KV stock last Spring. The plaintiffs allege that the company was less than up-front about its "financial well-being, business operations, and prospects" at that time.

Specifically, the plaintiffs claim, KV failed to disclose that the FDA hadn't granted the company exclusive distribution rights to Makena -- a hormone injection used by pregnant women to lower the risk of premature birth.

Nor, they allege, did KV level with investors about Makena's $1500 price tag per dosage, and how that would "decrease meaningful demand."

Check out the complaint below. Class Action Complaint v. KV Pharm

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