NEW YORK, May 31, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Invacare Corporation ("Invacare" or the "Company") (NYSE: IVC).
The investigation focuses on whether the Company and its executives violated federal securities laws by issuing materially false and/or misleading statements regarding the Company's noncompliance with Food and Drug Administration ("FDA") guidelines and Current Good Manufacturing Practices ("CGMP"). Specifically, the investigation focuses on whether the Company failed to disclose to investors a series of warnings from the FDA, filed on FDA Form 483, it received concerning serious compliance violations at its two major United States-based manufacturing facilities.
On January 4, 2011, the FDA made public a Warning Letter the agency sent to the Company. The Warning Letter detailed a multitude of CGMP violations and "recurring" consumer complaints regarding the safety of Invacare's medical beds, in particular deaths caused by entrapment and fire. The Warning Letter also detailed the Company's failure to take preventative action, as well as the failure of documenting and evaluating serious complaints and completing risk assessments to guarantee the safety of its products. After the public release of the Warning Letter, Invacare's stock price declined $1.38 per share or 4.5%.
The Company persisted in minimizing the extent and effect of its compliance issues, even after two additional Form 483s were sent in August 2011, which were also not disclosed to investors. On December 8, 2011, Invacare announced that the FDA communicated to the Company that it should negotiate and agree to a consent decree that required the Company to suspend certain operations until its manufacturing facilities became complaint with FDA regulations. On this news, the stock price dropped $5.88 per share, or 28.6%, closing at $14.70.
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If you invested in Invacare stock or options between July 22, 2010 and December 7, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/IVC. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Invacare's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP