Caraco Pharmaceutical Laboratories, Ltd. ("Caraco" or the Company) is an American company that offers generic drugs for the prescription and over-the-counter markets.

The original Complaint charges that Caraco and certain of its officers and directors violated federal securities laws. Specifically, it is alleged that Defendants failed to disclose the following: (i) Caraco failed to meet the United States Food and Drug Administration's ("FDA") current Good Manufacturing Practice ("cGMP") requirements; (ii) Caraco failed to take corrective measures in order to have its manufacturing facilities comply with the FDA's cGMP requirements; (iii) Caraco had failed to remedy repeat violations of FDA regulations previously observed and documented by the FDA; (iv) that the foregoing significantly jeopardized the Company's ability to gain FDA approval of pending new drug applications; and (v) as a result of the above, Caraco would have to recall certain products.

On June 25, 2009, the FDA announced that U.S. Marshals had seized drug products from the Company's facilities. According to the FDA, this action followed Caraco's continued failure to meet the FDA's cGMP requirements. On this news, shares of Caraco fell approximately 43% to $2.39 per share.

On January 12, 2010, Judge Arthur J. Tarnow signed the Stipulation and Order appointing Tushar Amin as lead Plaintiff and approving the lead Plaintiff’s selection of Glancy Binkow & Goldberg LLP as lead Counsel and the Miller Law Firm, P.C., as liaison Counsel. On February 11, 2010, the lead Plaintiff filed a Consolidated Amended Class Action Complaint. On April 12, 2010, the Defendants filed a motion to dismiss the Consolidated Amended Complaint. The motion was granted in part and denied in part on October 21, 2010. According to the Opinion and Order, the motion to dismiss is granted in part as to Count 1 against only Defendant Sun Pharma and denying in part the remainder of the Defendant's motion.

On April 15, 2011, the Plaintiffs filed a motion to certify the class. On February 28, 2012, the Court issued an Order granting the motion to certify.

On January 10, 2013, the Court issued an Order staying this case.

On February 27, 2013, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved on March 13. On June 26, the Court issued a Final Judgment and ordered this case to be dismissed with prejudice. The Court issued an Order authorizing disbursement of the net Settlement fund on April 22, 2014.