(NewsTraders) -- The Philadelphia District Office of the U.S. Securities and Exchange Commission has received SEC approval to commence an enforcement action against ICN Pharmaceuticals (ICN), Chairman and CEO Milan Panic, and an unidentified former senior executive, according to a Form 8-K.
The enforcement action alleges the company made false and misleading statements or omissions concerning the status and disposition of a 1994 new drug application for the use of ribavirin for monotherapy treatment of chronic hepatitis C.
The enforcement action includes remedies of injunctive relief and a civil penalty up to $500,000 against ICN Pharmaceuticals, and injunctive relief and a director and officer bar against Mr. Panic. An officer and director bar would effectively prohibit Mr. Panic from serving as an officer or director of a publicly traded company.
The Philadelphia District Office withdrew a request for enforcement action against Mr. Panic concerning allegations of illegal insider trading as well as remedies of disgorgement, interest, and monetary penalties.
In the company's August 14 quarterly filing, ICN said the investigation focused on, among other things, that fact that Mr. Panic sold ICN stock following receipt of a 1994 letter from the FDA stating that the company's Hepatitus C NDA had been found not approvable. Mr. Panic was also alleged to have made certain misstatements and omissions in federal tax filings.
Testimony before a Grand Jury by ICN employees began in July1998. In the quarterly filing, the company said the findings by the SEC could have a material adverse impact. |
