Zeldes & Haeggquist, LLP Announces Investigation of K-V Pharmaceutical

SAN DIEGO--(BUSINESS WIRE)--Zeldes & Haeggquist, LLP, a shareholder and consumer rights litigation firm, has commenced an investigation into possible violations of the federal securities laws by K-V Pharmaceutical Company (“K-V” or the “Company”) and certain of its officers or directors.

If you purchased shares of K-V (NYSE:KV.A) between February 14, 2011 and March 30, 2011 (the “Class Period”) and would like additional information regarding this investigation, or if you have information regarding the matters under investigation, please contact attorney Amber L. Eck at 619-342-8000 or by email at [e-mail].

K-V is a specialty pharmaceutical company that develops, markets and ships branded and generic pharmaceutical products. The investigation focuses on statements made in connection with Makena – a hormone medication prescribed to pregnant women to reduce the risk of preterm birth in women who have delivered a baby preterm in the past.

On February 4, 2011, K-V announced that the U.S. Food and Drug Administration (“FDA”) had granted approval for Makena. Claiming it had market exclusivity, K-V increased the price of Makena from $10 to $20 per injection to $1,500 per injection – 150 times the original cost.

K-V told investors on February 14, 2011, that pregnant women would have expanded access to Makena. However, two U.S. Senators and an industry group complained to the FTC that K-V’s actions would actually result in “diminished access” to Makena and “increased preterm births.”

K-V told investors that the FDA would prohibit competing compounding pharmacists from making and selling generic Makena. However, the FDA stated on March 30, 2011 that “this is not correct,” and that to support access to this important drug, it would not take enforcement action against pharmacies that compounded generic Makena.

As a result of this disclosure, K-V’s stock price dropped from $7.11 to $5.65 in one trading day, and the stock now trades around $1.30. However, defendants’ positive statements enabled K-V to sell $200 million worth of senior secured notes during the Class Period, used in large part to pay the Company’s debts.

Zeldes & Haeggquist is a full-service law firm which brings major class actions nationwide on behalf of defrauded investors and consumers and handles a variety of complex business litigation matters. Please visit www.zhlaw.com for more information.