LAWSUITS NEWS & LEGAL INFORMATION
Questionable Practices
St. Louis, MO: (Apr-09-08) A shareholders derivative lawsuit was brought against KV Pharmaceutical Co., a developer and marketer of pharmaceutical products, over the company's historic stock option granting practices. The suit was filed after an October 2007 independent investigation into the company's stock option practices and related accounting revealed that there were violations of the US Generally Accepted Accounting Principles (GAAP) with regards to certain compensation expenses between 1996 and 2006.
As part of a settlement reached, company spokespersons stated that the KV Pharmaceuticals has reached a comprehensive settlement agreement in principle with the plaintiffs, resolving the derivative lawsuit. Under the terms of the deal, the company will restate its financial statements for the fiscal years 1996 to 2006 to record additional non-cash stock based compensation expense in the amount of approximately $12 million, net of tax. Marc Hermelin, chairman of KV Pharmaceutical stated that the settlement was a way of putting the matter behind the company. [ST. LOUIS BUSINESS JOURNAL: KV PHARMACEUTICAL SETTLES STOCK OPTION LAWSUIT]
Published on Apr-10-08
As part of a settlement reached, company spokespersons stated that the KV Pharmaceuticals has reached a comprehensive settlement agreement in principle with the plaintiffs, resolving the derivative lawsuit. Under the terms of the deal, the company will restate its financial statements for the fiscal years 1996 to 2006 to record additional non-cash stock based compensation expense in the amount of approximately $12 million, net of tax. Marc Hermelin, chairman of KV Pharmaceutical stated that the settlement was a way of putting the matter behind the company. [
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