NEW YORK, April 8, 2013 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on April 8, 2013 in the U.S. District Court for the Northern District of California. The lawsuit was filed on behalf of persons or entities who purchased or otherwise acquired the publicly-traded common stock of Impax Laboratories, Inc. ("Impax" or the "Company") (Nasdaq:IPXL) between February 25, 2011 and March 4, 2013, inclusive (the "Class Period").
The action charges Impax and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company made false and misleading statements and concealed material information regarding manufacturing deficiencies at the Company's Hayward, California manufacturing facility.
Impax is a specialty pharmaceutical company engaged in the development, manufacture, and marketing of bio-equivalent pharmaceutical products, referred to as generics, in addition to the development of branded products. The complaint alleges that, during the Class Period, Impax concealed from shareholders that: (1) the Company failed to maintain proper quality control and manufacturing practices at its Hayward facility in violation of current Good Manufacturing Practices; (2) the Company failed to take proper remedial actions to correct quality control issues identified by the FDA in prior inspections of the Hayward facility; (3) the extent of the adverse effect that the manufacturing deficiencies at the Hayward facility could have on the Company's ability to successfully launch its new branded drug, RYTARY™; and (4) as a result of the foregoing, Impax lacked a reasonable basis for its positive statements about the Company and its outlook, including statements about its ability to launch Rytary or a generic version of a drug called Concerta® in 2013.
The truth about Impax and its manufacturing practices was revealed on March 4, 2013. That day, Impax announced that the FDA had completed an inspection of the Company's Hayward facility. Based on its inspection, the FDA issued a new Form 483, which is a form used by the FDA to document and communicate deficiencies in a company's quality system discovered during an onsite inspection. In the Form 483, the FDA cited twelve "observations," or problems, at the Hayward facility requiring remediation, including three repeat manufacturing problems that had not been corrected following prior FDA inspections. On a conference call hosted by the Company that day, Impax further revealed that, due to the manufacturing deficiencies, it did not expect to be able to launch Rytary or a generic version of Concerta until 2014. In reaction to these revelations, Impax's stock price declined $5.20 per share, or 26 percent, to close at $14.80 per share on March 5, 2013, on extraordinary trading volume.
If you are a member of this Class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
If you purchased Impax common stock during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than May 6, 2013. A lead plaintiff is a court-appointed representative for absent Class members. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (800) 321-0476 or (212) 907-0709, or via email at firstname.lastname@example.org.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for nearly 50 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.
CONTACT: Labaton Sucharow LLP (800) 321-0476 or (212) 907-0709Source:Labaton Sucharow LLP