USSEC
United States Securities & Exchange Commission v. ICN Pharmaceuticals, Inc.
Opinion
Opinion
Carter, J.
ORDER
DENYING DEFENDANT WATT’S MOTION TO DISMISS PLAINTIFF’S AMENDED COMPLAINT
For the reasons set forth below, the Court hereby DENIES Defendant Watt’s Motion to Dismiss.
On December 7, 1999, by Minute Order, the Court granted Defendant Watt’s Motion to Dismiss because Plaintiff had failed to state a claim for relief for securities fraud. Watt, the General Counsel and Executive Vice President of ICN, now argues that, in its Amended Complaint, the SEC has failed to correct the deficiencies of the original complaint and still fails to plead scienter as to Watt. In its Amended Complaint, the SEC alleges that on November 29, 1994, “Panic told Watt that ICN received the ‘not approvable’ letter from the FDA, and that there would be a delay in the approval process.” The SEC further alleges that Watt participated in a meeting on December 1, 1994, with Panic and Jo-hannesson, to review the “not approvable” letter and thereafter met with Johannes-son “several times between November 29, 1994 and December 2, 1994 to obtain information about the FDA’s scientific and technical analysis of the application.” Watt then prepared a draft of the allegedly misleading December 5, 1994 press…