NEW YORK, June 1 /PRNewswire-FirstCall/ -- Abbey Gardy, LLP commenced a Class Action lawsuit on behalf of a class (the “Class”) of all persons who purchased or acquired securities of Able Laboratories, Inc. (“Able” or the “Company”) between October 30, 2002 and May 18, 2005 inclusive (the “Class Period”).
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Able securities. The action, captioned Skoros v. Able Laboratories, Inc., et al., is pending in the United States District Court for the District of New Jersey against defendants Able Laboratories, Dhananjay G. Wadekar (CEO, President), Robert Weinstein (CFO, Treasurer to November 2004). A copy of the complaint filed in this action is available from the Court, or can be viewed http://www.abbeygardy.com
The Complaint alleges that starting on October 30, 2002 and continuing until May 18, 2005, defendants made a series of materially false and misleading statements regarding the about Able’s business and earnings. The Complaint alleges that throughout the Class Period, Able failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) the Company’s product testing procedures failed to meet standard industry practices and good manufacturing practices established by the FDA; (2) the Company was faced with potentially enormous liabilities and fines as a result of its breaches of good manufacturing practices; (3) the Company’s breaches jeopardized not only its current drug offerings but also the likelihood that drugs in development would gain FDA approval; and (4) as a result of the foregoing, defendants’ opinions and statements concerning Able’s current and future earnings lacked a reasonable basis at all times.
On May 19, 2005, Able announced that it had identified departures from standard operating procedures and good manufacturing practices with respect to certain laboratory testing practices and that as a result of these observations; the Company will be recalling additional products in the future. Able also announced on May 19 the resignation of Wadekar from his positions as Chairman and Chief Executive Officer.
This news shocked the market and the reaction of the stock market was dramatic. Shares of Able fell $18.37 per share, or $74.59 per share, on May 19, 2005, to close at $6.25 per share
On May 23, 2005, Able Laboratories announced that it is recalling all of its products for safety testing and taking the additional drastic step of withdrawing seven of its “abbreviated new drug applications” due to commercial reasons and “identification, in certain applications, of data upon which the Company is no longer willing to rely.” During the Class Period, insiders sold a total of 480,666 shares for proceeds of $9,533,047.00.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Able securities during the Class Period. If you purchased or otherwise acquired Able securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Able securities during the Class Period, you may, no later than July 22, 2005 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiffs.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Susan Lee or Nancy Kaboolian, Esq. Abbey Gardy, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail Susan Lee at slee@abbeygardy.com.
Abbey Gardy, LLP
CONTACT: Susan Lee or Nancy Kaboolian, Esq., +1-212-889-3700,+1-800-889-3701, slee@abbeygardy.com, both of Abbey Gardy, LLP
Web site: http://www.abbeygardy.com/
