SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether certain officers and directors of Impax Laboratories (Nasdaq:IPXL) violated state or federal laws.
A class action lawsuit against the Company has been filed on behalf of shareholders who purchased Impax stock between February 25, 2011 and March 4, 2013 (the "Class Period"). On April 18, 2014, the Honorable Edward M. Chen, United States District Court Judge for the Northern District of California, denied defendants’ motion to dismiss the class action lawsuit.
The complaint alleges that, during the Class Period, Impax concealed from shareholders: (1) the Company failed to maintain proper quality control and manufacturing practices at its Hayward facility in violation of current Good Manufacturing Practices; (2) the Company failed to take proper remedial actions to correct quality control issues identified by the FDA in prior inspections of the Hayward facility; (3) the extent of the adverse effect that the manufacturing deficiencies at the Hayward facility could have on the Company's ability to successfully launch its new branded drug, RYTARY™; and (4) as a result of the foregoing, Impax lacked a reasonable basis for its positive statements about the Company and its outlook, including statements about its ability to launch RYTARY™ or a generic version of a drug called Concerta® in 2013. The Court’s April 18, 2014 Order denying defendants’ motion to dismiss stated that plaintiffs “alleged with sufficient particularity that the statements identified in the [complaint] were false and misleading when made,” and that “given the importance of manufacturing and quality control to the success of Impax and the fact that both areas of operation had been flagged by the FDA, it is a logical, and strong, inference that the defendants were aware of the alleged severe and pervasive problems in Impax’s Hayward facility.”
Jim Baker, lead analyst at Johnson & Weaver, LLP, had this comment about the class action lawsuit: “Officers or directors should be held liable, rather than the Company and its shareholders, if they are found to be responsible for the claims made in the Class Action.”
If you have continuously held shares prior to February 2011 you may have standing to hold the Company harmless from the damage the officers and directors caused and make them personally responsible. You may also be able to assist in reforming the Company’s corporate governance to prevent future wrongdoing.
If you are a shareholder of Impax and believe: 1) damage was caused to the Company, and 2) officers or directors are responsible for the damage and they should be held liable rather than the Company and its shareholders, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.