NEW YORK, June 1 – LAWFUEL – The Law News Network — 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”)(Nasdaq: ABRX) 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.
http://www.abbeygardy.com
