SOURCE: Shalov Stone Bonner & Rocco LLP

Shalov Stone Bonner & Rocco LLP

August 05, 2009 11:55 ET

Shalov Stone Bonner & Rocco LLP Announces Investor Class Action Against Caraco Pharmaceutical Laboratories, Ltd.

NEW YORK, NY--(Marketwire - August 5, 2009) - Shalov Stone Bonner & Rocco LLP announces that a class action lawsuit has been filed on behalf of purchasers of the securities of Caraco Pharmaceutical Laboratories, Ltd. ("Caraco" or the "Company") (AMEX: CPD) between May 29, 2008 and June 25, 2009, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Eastern District of Michigan against Caraco; Daniel H. Movens, Caraco's Chief Executive Officer, and a director; and Mukul Rathi, the Company's Interim Chief Financial Officer.

The complaint alleges that, throughout the Class Period, the defendants violated the federal securities laws by misrepresenting and failing to disclose material adverse facts. More specifically, the complaint alleges that the defendants failed to disclose: (1) that Caraco failed to meet the FDA's current Good Manufacturing Practice ("cGMP") requirements; (2) that Caraco failed to take corrective measures to have its manufacturing facilities comply with the FDA's cGMP requirements; (3) that Caraco failed to remedy repeat violations of FDA regulations the FDA had previously observed and documented; (4) that as a result of the foregoing, Caraco's ability to gain FDA approval of pending new drug applications was considerably jeopardized; and (5) that as a result of the above, Caraco would have to recall certain of its products.

According to the complaint, on June 25, 2009, the FDA announced that because Caraco failed to meet the FDA's cGMP requirements, U.S. Marshalls seized drug products Caraco manufactured from several of the Company's facilities. Following this announcement, Caraco's stock fell significantly.

Shalov Stone Bonner & Rocco LLP has extensive experience in the prosecution of class actions on behalf of investors. For more information about the firm, please visit its website at: www.lawssb.com

If you would like additional information about the lawsuit or would like to participate in it, please contact investor rights attorney Amanda C. Scuder, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email: ascuder@lawssb.com).

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