Able Labs Files for Bankruptcy

Shares rose 13.6% to $1.59 on the news.
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Able Laboratories

(ABRX)

-- which has recalled all of its products, halted all manufacturing, seen two CEOs resign and become a lawsuit magnet -- is seeking bankruptcy protection.

The Cranbury, N.J., drug company announced Monday night that it has filed a Chapter 11 reorganization petition.

The announcement appears to have been its stock's best news in months. Shares rose on Tuesday by 19 cents, or 13.6%, to $1.59. The stock is still down more than 90% since mid-May.

In May, the company suspended manufacturing and recalled all of its products due to concerns about laboratory and manufacturing practices.

The company says its Chapter 11 filing will help it remain in operation while it talks to the Food and Drug Administration about

fixing its manufacturing problems, improving its systems and controls and bringing its products back to the market.