ITEM 8.01 Other Events

On March 17, 2009, Lannett Company, Inc. ("Lannett") settled its suit (Civil Action No. 08-338 (JJF)) and all related litigation against KV Pharmaceuticals, DrugTech Corp., and Ther-Rx Corp (collectively "KV").

In light of the withdrawal of KV's innovator prenatal product, and the resulting anticipated decline in sales and declining market for written prescriptions, Lannett decided it was pointless to continue the litigation and entered into the settlement arrangement with KV. Pursuant to the settlement, Lannett will receive a license from KV and will become an authorized generic provider. During the terms of the license, Lannett will pay KV a royalty on all future sales of its OB NATAL prenatal product. Lannett will cease offering its prenatal product if and when the brand is restored to the marketplace.