mail@shareholdersfoundation.com
-
Jun 29, 2009 -
SAN DIEGO, CA (www.ShareholdersFoundation.com)
– An investigation on behalf of certain investors of Caraco Pharmaceutical Laboratories Ltd. (Public, AMEX:CPD) over potential claims against Caraco Pharmaceutical Laboratories, Ltd. (AMEX:CPD), concerning possible securities violations related to public statements made by the Company between May 29, 2008 and June 25, 2009.
If you are a long term investor in Caraco Pharmaceutical Laboratories Ltd. (AMEX:CPD) and/or purchased Caraco Pharmaceutical Laboratories Ltd. (AMEX:CPD) shares between May 29, 2008 and June 25, 2009, you have certain options and you should contact the Shareholders Foundation, Inc immediately at:
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
U.S. authorities have seized all medicines produced by generic drug maker Caraco Pharmaceutical Laboratories Ltd (CPD.A) following repeated violations of manufacturing standards according to health officials. Subsequently an investigation by a law firm concerning allegedly false and misleading statements and material omissions between May 29, 2008 and June 25, 2009 by Caraco Pharmaceutical, and reports that on June 25, 2009 was announced. Caraco Pharmaceutical Laboratories, Ltd. announced on Thursday, June 25, 2009, that U.S. Marshals, at the request of the FDA, arrived and seized drug products manufactured in its Michigan facilities and that the seizure also included ingredients held at these same facilities, but that products distributed by Caraco that are manufactured outside of these facilities are not impacted. The FDA's inspection of Caraco Pharmaceutical Laboratories, Ltd.'s Detroit facility, completed in May 2009, found unresolved violations of cGMP requirements as previously disclosed in last SEC filing on Form 10-K filed June 15, 2009, so Caraco Pharmaceuticals in its press release. According to the FDA, the seizure followed Caraco Pharmaceutical’
s continued failure to meet the FDA’s current Good Manufacturing Practice requirements, which assure the quality of manufactured drugs. The FDA said in a statement that "This action follows Caraco's continued failure to meet" manufacturing standards that assure drug quality and the FDA through the seizure seeks “to immediately stop the firm from further distributing drugs until there is assurance that the firm complies with good manufacturing requirements."
. The company was warned about manufacturing problems in an FDA letter sent in October 2008, said FDA consumer safety officer David Jaworski. On this news, so the investigation, shares of Caraco stock plummeted over 40%. Shares of Caraco Pharmaceutical Laboratories Ltd. (Public, AMEX:CPD) fell on Thursday June 25, 2009 from $4.30 per share to $1.93 per share, and closed at $2.39 per share on June 25, 2009. Since January 2009, Caraco has had to initiate voluntary recalls of drug products to protect the public from potentially defective medications and the recalls involved manufacturing defects, including oversized tablets and possible formulation error, so the investigation. FDA officials advised Consumers now taking medicines made by Caraco should not stop since any defective drugs have come off the market in a series of recalls since January.
On June 26, 2009 Caraco Pharmaceutical Laboratories announced that the products in its inventory related to the FDA action are currently being identified and the early estimated value of this inventory is in the range of $15 to $20 million. In addition Caraco announced that it expects that with a cash balance as of June 25, 2009 of approximately $64 million which includes a loan of $18 million Caraco’
s financial position will allow Caraco the time to resolve its pending FDA issues. Caraco Pharmaceutical Laboratories, Ltd., Detroit, MI, is engaged in the business of developing, manufacturing, marketing and distributing generic and private-label pharmaceuticals to wholesalers, distributors, warehousing and non-warehousing chain drugstores and managed care providers, throughout the United States and Puerto Rico. Caraco Pharmaceutical Laboratories reported $350.37million in Total Revenue with a net income of $35.39million in 2007 and $337.18million in Total Revenue with a net income of $20.54million in 2008. Shares of Caraco Pharmaceutical Laboratories Ltd. (Public, AMEX:CPD) closed on Friday, June 26, 2009 at $3.39 per share, down from a 52weekHigh of $16.40 per share and $18.50 per share in April 2008.
If you are a long term investor in Caraco Pharmaceutical Laboratories Ltd. (AMEX:CPD) and/or purchased Caraco Pharmaceutical Laboratories Ltd. (AMEX:CPD) shares between May 29, 2008 and June 25, 2009, you have certain options and you should contact the Shareholders Foundation, Inc immediately at:
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-
779-1554
Fax:+1-(858)-
605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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http://www.prlog.org/10269668/1Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Any statements made in press releases, emails or over the phone by any member or personnel employed by Shareholders Foundation, Inc. or by third parties related to the Shareholders Foundation, Inc. is provided for research and guidance purposes only and are not legal advices. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
