MINNEAPOLIS, Aug. 12, 2009 (GLOBE NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action 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) publicly traded securities during the period May 29, 2008 through June 25, 2009 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before September 15, 2009. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Defendants failed to disclose the following: 1) Caraco failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; 2) Caraco failed to take corrective measures in order to have its manufacturing facilities comply with the FDA's cGMP requirements; 3) Caraco had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; 4) that the foregoing significantly jeopardized the Company's ability to gain FDA approval of pending new drug applications; and 5) as a result of the above, Caraco would have to recall certain products.
On June 25, 2009, the FDA announced that U.S. Marshals had seized drug products from the Company's facilities. According to the FDA, this action followed Caraco's continued failure to meet the FDA's cGMP requirements. On this news, shares of Caraco declined $1.79 per share, or approximately 43%, to close on June 25, 2009 at $2.39 per share.
If you purchased Caraco Pharmaceutical Laboratories, Ltd. stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685