With Stock Price Fluctuating, Mylan Fires Back at Post-Gazette

In the latest installment of a continuing saga, Mylan Labs is suing the two reporters from the Pittsburgh Post-Gazette who alleged Quality violations at the manufacturer's Morgantown, West Virginia facility. (Here's the summary of the saga's opening chapters.) The suit is based on what Mylan says were inaccurate, sensational articles based upon "improperly obtained and misconstrued confidential internal documents."

This is far from just a matter of principle. There's a lot of money at stake, especially for Mylan shareholders who have seen the company's stock price falter in the wake of the allegations. As Jim Edwards of BNET points out, the company's CEO and other executives carry significant stock options, and this isn't the first dustup between Mylan and the paper, so the fight is getting personal, for good reason.

For the rest of us, this case has implications far beyond the rust belt. As Agnes Shanley notes, it's a good bet that lackluster quality controls are rampant throughout the industry, and the potential for repercussions beyond falling stock prices (ie, risk to patient safety) is real. Whether Mylan likes it or not, this story will not soon go away.

--Paul Thomas