Drug company stock tanks amidst recall announcement
KV Pharmaceutical stock plummets with company stoppage announcement.
West Palm Beach, FL (JusticeNewsFlash.com)–Wall Street investors and American consumers watched shares of KV Pharmaceutical tank Monday morning. The drug manufacturer announced it will recall most of its medication products and stop its manufacturing and shipping operations. The company recalled two of its top products in November and December of 2008, including medications used to treat pain and attention deficit disorder (ADD).
The drug producer is still being investigated by the U.S. Food and Drug Administration (FDA) www.fda.gov involving the recalls for over sized tablets they made. These overly large pills can lead to dangerous drug doses possibly causing injury and death. Federal investigators continue to review KV’s manufacturing and quality control practices. The drug company is currently facing investigation by the U.S. Securities and Exchange Commission (SEC) www.sec.gov for possible securities violations and is being sued by investors in class action lawsuits. The company owed $30 million to creditors at the end of 2008. KV executives also said they may breach the terms of their credit agreement because of the impact the current events are having on their finances.
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