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Oct. 20 (Bloomberg) -- KV Pharmaceutical Co. was sued by an investor who accused it of misleading shareholders about its marketing plans for Makena, a drug intended to prevent premature births.
Frank Julianello’s complaint, filed yesterday in federal court in St. Louis, accuses the Bridgeton, Missouri, drugmaker, Chief Executive Officer Gregory Divis and another executive, Scott Goedeke, of making false statements in February about its intent to make the drug widely available.
Democratic U.S. Senators Amy Klobuchar of Minnesota and Sherrod Brown of Ohio criticized KV the following month for pricing Makena at $1,500 per injection, when it previously was available for $10 to $20 per weekly dosage. KV shares fell 21 percent on March 30 after the U.S. Food and Drug Administration said pharmacists were free to provide less-expensive versions. KV dropped from $13.07 on March 8 to $4.60 on April 5, losing 65 percent of its value.
“This decrease in the price of KV’s stock was a result of the artificial inflation caused by defendants’ misleading statements,” according to Julianello’s complaint.
He seeks class-action, or group, status on behalf of everyone who bought the company’s stock from Feb. 14 to April 4, an an award of unspecified money damages, plus interest.
There was no immediate reply yesterday to voice-mail or e- mail messages left with the company’s investor relations department.
Goedeke is a vice president with the company’s Ther-Rx Corp. unit.
The case is Julianello v. KV Pharmaceutical Co., 11- cv-01816, U.S. District Court, Eastern District of Missouri (St. Louis).
--Editors: Mary Romano, Glenn Holdcraft
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