Friday, October 21, 2005

Get Your Snake Oil Here

Looks like Plaintiffs carried the day on the motions to dismiss in the Pozen securities class action. Basically, they accused Pozen and its execs of issuing false information regarding a pre-FDA approved drug they had developed to treat migraines. Here we go again. Hello, McFly, did any of these guys see what happened to Sam Waksal? What’s that, you don’t know where he is at this very moment? Well, according to the Federal Bureau of Prisons, he’s making license plates at The Federal Correctional Institution (FCI) in Otisville, which they describe as “a medium security facility housing male offenders,” with a “a minimum security satellite prison camp” “situated in the southeastern part of New York state,” about “70 miles northwest of New York City.” Want to see for yourself, or find that long lost friend from college? Just click here, it’s fun.

Anyway, Judge Frank W. Bullock, Jr. (M.D.N.C.) (just so you know, the Middle District is now accepting Diners Club, presumably in case Telly Savalas or one of the six people that still carry them want to file a case there; see here, it’s true) found that some of the statements Pozen made touting the drug could be false, and wrapped up the scienter issue in a one-liner, saying “Plaintiffs have also adequately alleged that Defendants made such statements with scienter.” Remains to be seen if the Pozen execs will be joining Mr. Waksal. No idea, but here’s the visiting guidelines should they want to stop by and check the place out. It sounds lovely.

You can read In re Pozen, issued August 30, 2005, at 2005 U.S. Dist. LEXIS 22617.

Nugget: “Use of the same term with different definitions within a single public statement could undoubtedly confuse some investors.”

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