The following is the 8-K filed yesterday by IPIC. This was the reason for the stock's drop, IMO.
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ITEM 5. OTHER EVENTS
On August 29, 1997, Interneuron Pharmaceuticals, Inc. (the "Company"),
was served with a complaint in Alabama state court naming 10 pharmaceutical
companies, including the Company, four weight-loss centers and one individual
physician in what purports to be a nationwide class action on behalf of all
persons who have suffered injury or who may suffer injury in the future due to
use of one or more weight loss drugs, including fenfluramine, phentermine, and
ReduxTM (dexfenfluramine). The suit alleges, among other things, that the
various drugs were negligently tested and marketed and that the companies failed
to adequately warn the medical community and patients of the risks associated
with use of the weight loss drugs, singly and in combination, and failed to
disclose pertinent information to the U.S. Food and Drug Administration. In
addition, the complaint alleges causes of action based on strict liability,
breach of warranty, negligent misrepresentation and fraud, and seeks an
unspecified aggregate amount of actual and punitive damages, as well as
injunctive relief. The Company intends to vigorously defend the action.
Except for the descriptions of historical facts contained herein, this
report contains forward-looking statements that involve risks and uncertainties
as detailed from time to time in the Company's filings under the Securities Act
of 1933 and the Securities Exchange Act of 1934, including in particular, risks
relating to the commercialization of Redux, such as marketing, safety and
regulatory, patent, product liability, litigation, supply, contractual
obligations, uncertainties relating to clinical trials and other risks. |
