Pharmaceutical Company Could Face Company Stock Suit

The law firm of Stember Feinstein Doyle&Payne, LLC, is investigating conduct that it believes might have caused losses to the KV Pharmaceutical Company Profit Sharing Plan and Trust.

An announcement from the law firm said it is investigating whether certain fiduciaries of the plan knew or should have known that its statements regarding its financial health and manufacturing processes were inaccurate, which may have caused the price of KV’s shares to be artificially inflated.

Specifically, the firm is investigating whether KV breached its fiduciary obligations under the Employee Retirement Income Security Act (ERISA):

  • by continuing to offer KV common stock as an investment option for participant contributions when it was imprudent to do so;
  • by failing to take action to sell KV stock or otherwise protect the plan’s assets;
  • by failing to adequately disclose alleged problems with manufacturing processes and alleged non-compliance with the Food and Drug Administration (FDA) regulations.

Ellen Doyle of Stember Feinstein Doyle & Payne has been appointed class counsel to represent numerous classes of ERISA plan participants.

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