Wednesday, May 25, 2005

Able Laboratories Suspends all Business

Able laboratories, makers of generic drugs in the class of Tylenol, Ritalin and Vicodin etc, were warned that they were about to be checked out by the FDA. Their CEO promptly resigned.

Now Able have suspended all manufacturing and distribution. An internal investigation is underway.

According to a warning letter sent to the company by the U.S. Food and Drug Administrationin the company was in violation of not reporting serious side effects linked to some of its drugs.

A lawsuit filed in U.S. District Court by the law firm Schoengold, Sporn, Laitman, and Lometti accused company executives of “making materially false and misleading statements regarding the company’s business and prospects to artificially inflate the value of Able stock.”

Able’s share price has dropped 80%.

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