ICN to Seek New Court Order If Efforts for Ouster Persist

ICN Pharmaceuticals Inc. said Thursday that it will seek a new court order against a Beverly Hills stockbroker if he renews efforts to oust the company’s directors.

Stockbroker Rafi Khan, a dissident ICN shareholder, hailed as a victory a U.S. Court of Appeals decision Wednesday to overturn a May 13 ruling barring him from soliciting shareholder support in a proxy fight. He also said he will renew his effort to overthrow ICN Chairman Milan Panic and other members of the company’s board.

But ICN spokesman Doug Schoen said that the appeals court decision also upholds key lower court findings about a lawsuit the company filed against Khan. “The essence of the case remains intact,” Schoen said.

The ICN suit accuses Khan of using inside information and abusing his fiduciary responsibilities as an underwriter of ICN stock when he was a broker at H.J. Meyers & Co. in Beverly Hills. Khan now works for Beverly Hills brokerage Reynolds Kendrick & Stratton.

If Khan persists in soliciting support to oust Panic and other board members, Schoen said, ICN’s suit will be reactivated.

The company, which put off its annual meeting in May until the appeals court could rule, said it has not yet rescheduled the meeting.

In Thursday’s trading on the New York Stock Exchange, ICN stock gained 62 1/2 cents a share to close at $10.38.