SOURCE: Kaplan Fox & Kilsheimer LLP

June 16, 2005 15:31 ET

Kaplan Fox Seeks to Recover Losses for Investors Who Purchased Able Laboratories, Inc. Common Stock

NEW YORK, NY -- (MARKET WIRE) -- June 16, 2005 -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit in the United States District Court for the District of New Jersey against Able Laboratories, Inc. ("Able" or the "Company") (NASDAQ: ABRX) and certain of its officers and directors, on behalf of all persons or entities who purchased the publicly traded common stock of Able between October 30, 2002, and May 18, 2005, inclusive (the "Class Period").

The complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's financial condition and its compliance with the FDA's current Good Manufacturing Practices regulations relating to the manufacture and other processing of drugs, thus causing Able's shares to trade at artificially inflated levels.

On May 10, 2005, Able disclosed that during the quarter ended March 31, 2005, the Company "conducted voluntary product recalls affecting three product families" and the Company "initiated a thorough internal evaluation" of its operating practices "with the knowledge of the FDA."

On May 19, 2005, Able disclosed that it "identified apparent departures from standard operating procedures with respect to certain laboratory testing practices" and the Company decided "to suspend shipment of each of its products until such time as it can assure itself that the product has been manufactured and tested in compliance with standard operating procedures and current good manufacturing practices." The Company stated that the disruption in shipment "is expected to have a material effect." Able also announced that its chairman and CEO would resign.

On May 19, 2005, as a result of these disclosures, the price of Able common stock declined nearly 75%, closing at $6.26 per share, down $18.37 per share form its previous close, on heavier than usual volume.

On May 23, 2005, Able announced that the Company decided to suspend "the manufacture and distribution of its products until such time as it can assure itself that its products are manufactured and tested in compliance with standard operating procedures and current good manufacturing practices." The Company also announced that it "intends to withdraw seven of its approved Abbreviated New Drug Applications filed with the FDA… " Then on May 27, Able disclosed that it reduced its staff by about 200 employees. On June 9, 2005, Able announced further staff reductions.

If you are a member of the proposed Class, you may move the court no later than July 22, 2005, to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:

Contact Information

  • Frederic S. Fox
    Joel B. Strauss
    Donald R. Hall
    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    805 Third Avenue, 22nd Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: Email Contact

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    555 Montgomery Street, Suite 1501
    San Francisco, California 94111
    (415) 772-4700
    Fax: 415-772-4707
    E-mail address: Email Contact