SOURCE: Schoengold Sporn Laitman & Lometti, P.C.

May 23, 2005 18:49 ET

Schoengold Sporn Laitman & Lometti, P.C. Announces Class Action Lawsuit Against Able Laboratories, Inc. (NASDAQ: ABRX)

NEW YORK, NY -- (MARKET WIRE) -- May 23, 2005 -- Schoengold Sporn Laitman & Lometti, P.C. filed a class action lawsuit against Able Laboratories, Inc. ("Able" or the "Company") (NASDAQ: ABRX) and certain key officers and/or directors in the United States District Court for the District of New Jersey, Newark Division. This action has been brought on behalf of all purchasers of Able securities during the period between June 25, 2003 and May 23, 2005 (the "Class Period"). If you purchased Able securities during the Class Period and would like to join the action pursuing securities claims against the Company and its officer and/or director defendants, you may do so by visiting Schoengold Sporn Laitman & Lometti's website at www.spornlaw.com or contacting Schoengold Sporn Laitman & Lometti, toll free at (866) 348-7700 or via e-mail at shareholderrelations@spornlaw.com. However, please note that the deadline to seek lead plaintiff status in this case expires sixty days from May 23, 2005.

The complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements regarding the Company's business and prospects to artificially inflate the value of Able stock. It is alleged that throughout the Class Period, the defendants represented to the Class that the Company had numerous Abbreviated New Drug Applications ("ANDAs") that were approved or were pending with the United States Food and Drug Administration ("FDA"). These statements were false and misleading when made because the defendants failed to disclose or indicate that the testing of Able's products did not adhere to standard operating procedures and good manufacturing practices ("GMP").

The Company shocked the investing public when, on May 19, 2005, it announced that it was suspending shipments of its products until it could determine whether its products were manufactured and tested in compliance with standard operating procedures and current GMP. Further, later that day, the Company announced the resignation of Dhananjay G. ("Jay") Wadekar, its Chief Executive Officer and the Chairman of the Company's Board of Directors.

The market reacted severely to these announcements. Able's common stock price plummeted from $24.63 per share on May 18, 2005 to $6.26 per share on May 19, 2005 on volume of 31,346,100 -- almost 30 times the previous day's volume.

However, investors were shocked once again when, on Monday, May 23, 2005, the Company announced that it had suspended manufacture and distribution of its products; initiated a recall of all its products; and withdrawn seven of its approved ANDAs because those applications were based on data upon which the Company was no longer willing to rely. The Company's stock price dropped further, to $5.05 per share.

If you purchased Able securities during the Class Period and either sold those securities at a loss or still hold them, you may request that the Court appoint you as a lead plaintiff. However, you must do so before sixty days from May 23, 2005.

Schoengold Sporn Laitman & Lometti was established in 1962 and has specialized in securities fraud litigation for over 35 years. The firm was cited by the Wall Street Journal in a study of the largest recoveries, as a percentage of overall damages, for its recoveries in the Anadigics and Versatility cases, which ranked first and third for recovering 44% and 30%, respectively, of plaintiffs' overall losses. Most recently, in 2004, the firm recovered $40 million for a class of Nicor, Inc. shareholders, representing approximately 35% of reasonably recoverable damages.

If you would like to further discuss your rights, you may call collect or otherwise contact the undersigned, who will be pleased to assist:

Contact Information

  • CONTACT:
    Jay P. Saltzman, Esq.
    Ashley Kim, Esq.
    Schoengold Sporn Laitman & Lometti, P.C.
    19 Fulton Street, Suite 406
    New York, New York 10038
    Tel: (212) 964-0046
    Fax: (212) 267-8137
    Toll Free: (866) 348-7700
    E-Mail: shareholderrelations@spornlaw.com
    Website: www.spornlaw.com