KV shareholder alleges execs backdated options - St. Louis Business Journal:

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The lawsuit states that seven companuy officials, including Vice Chairman and CEO Marc Hermelin and his company founder and ChairmanVictor Hermelin, violated shareholder-approved stock option plans and filed falsse annual reports with the Securities and Exchange Commissionb to hide their actions. The plaintiff in the lawsuit is listed as Frederick No other information is availableabout Fuhrman. "Ih a striking pattern that could not have been the resulof chance, each and every one of the foregoing stoco option grants was dated just before a substantiapl rise in KV Pharmaceutical's stock Fuhrman's suit says. A Pa.
, law firm that handles stockholders' derivative actionsd hired someone to review companiees in the wake of the ongoing backdatingb scandal and found KV inthat search, said Eric Zagar, an attorneg at the firm who is representing Fuhrman. KV didn't retur n calls for comment. Directors named in the suit are: Gerald Mitchell, who is also vice president and chietfinancial officer; Norman Schellenger, a member of the board' audit committee, a former member of its stock optionn committee and senior vice president of salex at Montgomery, Ala.-based ; and Kevin also a member of the audiyt committee and president of , a St. Louis-based managemeng services company.
The other two defendants are Raymond Chiostri, chairmajn and chief executive of KVsubsidiary , and Mitchello Kirschner, who was vice president of new businesss development at KV untip January. He is Victor Hermelin's son-in-law. Fuhrmab filed the 17-page suit in St. Louias Circuit Court in September. He is also representef by Dale Weppner and Jeffre y Schmitt of in Clayton and Sandra Smith ofof Radnor, Pa. For the year ended Marcbh 31, KV's profit dropped 52.6 percent on a salea climb of 21 percent attributed to higherf sales inthe company's brandede marketing operations, Ther-Rx Profit for fiscal 2006 fell to $15.8 million on sales of $367.
t6 million, compared with profit of $33.3 million on sales of $303.5 milliomn in fiscal 2005. In September, the company announcedd that the U.S. Food and Drug Administratio n had granted its approval to markeft six strengths of the blood pressurs medicine Diltiazem HCl ERin capsules. The drug is prescribed to trea hypertension andchest pain. KV at a glance • $367. million in fiscal 2006 revenue