ICN Wins Fraud Case, But Shareholders Press On

ICN Pharmaceuticals of California, USA, says that a jury in New York has rejected a number of the claims of securities fraud brought against the company by a class of shareholders with respect to public statements made in 1986 and 1987 regarding its antiviral Virazole (ribavirin; Marketletters passim).

On the remaining claims, the jury was unable to reach a verdict and a mistrial was declared on those issues. ICN says there were no findings of violations of the securities laws and no damages were awarded. However, a report from Reuters says that lawyers representing the shareholders have said they will continue to pursue their class action lawsuit against ICN. Daniel Berger, partner of law firm Bernstein Litowitz Berger & Grossman, said in a statement: "the jury certainly did not find ICN and its co-defendants blameless; on behalf of the investor class, we will seek an immediate retrial on the outstanding issues."

ICN chairman, president and chief executive Milan Panic said that while the company is pleased by the vindication, "it does not redress the abuses that often occur in a system that permits these types of securities class actions." ICN has been fighting this battle for almost a decade, Mr Panic pointed out, "always believing that our disclosures were full, fair and made in good faith."