NEW YORK, July 27, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Eastern District of Michigan on behalf of purchasers of Caraco Pharmaceutical Laboratories, Ltd. ("Caraco" or the "Company") (AMEX:CPD) securities during the period between May 29, 2008, through Jun 25, 2009 (the "Class Period") for violations of the federal securities laws.
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 during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by September 15, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
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 Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; that the Company failed to take corrective measures to have its manufacturing facilities comply with cGMP requirements; that the Company failed to remedy known violations of FDA regulations; that as a result of the foregoing the Company's ability to secure FDA approval for pending drug applications was jeopardized; and that as a further result of the above, the Company would have to recall certain products. According to the Complaint, on June 25, 2009, after the FDA announced that U.S. Marshals had seized drug products manufactured by Caraco from the Company's facilities because of the Company's failure to comply with the FDA's cGMP requirements, the value of Caraco's stock declined significantly.