A securities fraud class action lawsuit has been filed against the makers of flu and cold treatment Cold-fX. The lawsuit was filed in Ontario Superior Court in Toronto on behalf of any Canadians who acquired CV Technologies shares between December 11, 2006, and March 23, 2007.
The class claims CV Technologies' financial statements were misleading and that US sales of its lead product, Cold-fX, were vastly inflated. On June 14, 2007, the biotech company filed restatements of previously reported financial statements for the year ended September 30, 2006, and the quarters ended December 31, 2006, and March 31, 2007. The company restated 2006 sales at $41.4 million, compared to the originally reported revenue of $47 million. After CV Technologies restated its finances, shareholders filed a securities fraud class action under Ontario's new investor legislation.
