Big beard, big problems: KV's former CEO Marc Hermelin
As if KV Pharmaceutical
wasn't roiling with enough intrigue
already: In addition to criminal convictions, a wave of firings, bickering executives, and legal wrangling, the Bridgeton-based drug company now must defend itself against a class-action lawsuit
The suit, filed yesterday in federal court, is being brought by folks who purchased KV stock last Spring. The plaintiffs allege that the company was less than up-front about its "financial well-being, business operations, and prospects" at that time.
Specifically, the plaintiffs claim, KV failed to disclose that the FDA hadn't granted the company exclusive distribution rights to Makena -- a hormone injection used by pregnant women to lower the risk of premature birth.
Nor, they allege, did KV level with investors about Makena's $1500 price
tag per dosage, and how that would "decrease meaningful demand."
Check out the complaint below. Class Action Complaint v. KV Pharm