U.S. court revives KV Pharmaceutical investor suit

(Reuters) – Investors can continue to bring claims against KV Pharmaceutical Co for making false or misleading statements to the U.S. Food and Drug Administration, a federal appeals court ruled on Monday. The 8th Circuit Court of Appeals largely revived a proposed securities fraud class action that had been dismissed in its entirety by a trial court in 2010. In the lawsuit, investors claimed to have suffered $1.5 billion in losses because KV, a generic drug maker, first misled the FDA in its compliance reports, and subsequently shut down its manufacturing operations in 2009. …