In yet another major shakeup, KV Pharmaceutical's board chairman, a member of its audit committee and its chief financial officer quit this week.
The chairman and audit committee member charged that KV's newly elected board can't provide the independent oversight the company needs. The new board had been elected last Thursday.
The CFO, John Stamp, quit on Monday and has not been replaced, the company said in a regulatory filing released Wednesday afternoon.
KV also revealed that the new board had terminated interim CEO David A. Van Vliet. The company last week announced that Van Vliet had been replaced but gave no details.
The management flux follows collisions between KV and the Food and Drug Administration, and the criminal conviction of a company subsidiary.
The trouble concerned manufacturing mistakes that led the company to distribute oversized pills, some of them morphine pain killers. Some pills had double the advertised dose.
Manufacturing has stopped, and the company has laid off more than three-quarters of its employees.
In their resignation letters, board chairman Terry Hatfield and audit committee member John Sampson said they had 'serious concerns regarding the ability of the newly constituted board and senior management to provide the required independent oversight of KVs business during this critical time in the company's history."
They noted that only three of the board's seven nominees for board seats were elected at KV's annual meeting last Thursday. The remaining elected members were candidates proposed by shareholders.
The family of the firm's founder, Victor Hermelin, retains 52 percent of the Class B shares, which have super voting rights, according to the company proxy issued in May.
Among those re-elected to the board was Marc Hermelin, son of the founder, who was ousted as CEO in 2008. Also re-elected was David Hermelin, the son of Marc Hermelin and a former director of corporate strategy who retained his seat on the board.
David Hermelin was among the board's nominees. Marc Hermelin was not.
Hatfield is president of ZeaVision, a nutraceutical company. He had been a KV board member since 2004 and chairman since 2008. Sampson, a retired pharmaceutical executive, had joined the board this year.