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APPEALS COURT CONFIRMS KHAN ENGAGED IN INSIDER TRADING ICN TO IMMEDIATELY SEEK ANOTHER INJUNCTION

 NEW YORK, Aug. 26 /PRNewswire/ -- Milan Panio, chairman and chief executive officer of ICN Pharmaceuticals (NYSE: ICN), said today that the company would immediately seek another injunction barring stock broker Rafi Khan from seeking to take control of ICN by any means following a federal appeals court ruling yesterday that found Khan to have engaged in insider trading of ICN common stock and in other security law violations.
 Arnold I. Burns, senior partner, Proskauer, Rose, Goetz and Mendelsohn, attorneys representing ICN Pharmaceuticals, Inc., termed the Federal Appeals Court ruling a "tremendous victory for ICN."
 The Court of Appeals said, "Certainly, the Consent Statement and any Schedule 13D filings required by Khan's past activities are currently in litigation before that court, and as a practical matter will require its approval...Any SEC filings by Khan would be required to be delivered simultaneously to ICN...and we doubt that ICN will shrink from seeking any judicial relief that might seem warranted."
 "We will be raising additional points and additional claims of very serious securities violations by Mr. Khan, and, in the circumstances, it seems to us that we will undoubtedly be seeking another injunction," Burns said. "So while the Appeals Court vacated the permanent aspects of the injunction and sent the case back to Judge Sprizzo, our basic position was fully supported."
 Burns further said, "I am extremely gratified -- indeed delighted -- by the decision of the Court of Appeals, notwithstanding that there are portions of the opinion with which we disagree." Burns noted four other significant points in the Court's decision:
 First, the court upheld the District Court's finding, stating that..."it is clear that corrective disclosure would not address all the securities law violations that Khan was found to have committed. The District Court explicitly concluded, on the basis of factual determinations that are amply supported in the record, that Khan had engaged in illegal inside trading of ICN's common stock. It would certainly fall within the parameters of traditional injunctive relief to preclude Khan from voting any illegally acquired stock in a contest for control of ICN."
 Second, the Court holds that the injunction issued by the United States District Court was proper and accepts the District Court's ruling that Mr. Khan's filing with the SEC failed to make material disclosures and until those SEC disclosures are made, the injunction was appropriate.
 Third, the Court found that the injunction was proper because the District Court determined that Khan and his group owned a potentially controlling share of ICN's common stock and that the group was collaborating with Khan. The Court of Appeals accepts the District Court's ruling in this regard and holds that the injunction was proper.
 Fourth, the Court of Appeals said "we have no quarrel with the District Court's conclusion that Khan was a statutory underwriter -- or that in that capacity he had fiduciary obligation to ICN and Viratek." Burns said the Court of Appeals "thus accepts one of the very key points of our position."
 The case was remanded to the United States District Court for further proceedings. "In the unlikely event that Mr. Khan's attempted takeover reaches shareholders, we will, consistent with the Court of Appeals opinion, point out that he was found by the District Judge to have offered incredible....false and willfully false testimony under oath," Burns said, "that being, he was simply found to have lied."
 -0- 8/26/93 R
 /CONTACT: Doug Schoen of Penn and Schoen, 212-534-4000/
 (ICN)


CO: ICN Pharmaceuticals ST: IN: MTC SU:

LD-SM -- NY070 -- 6494 08/27/93 09:06 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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