ICN Sued Over Harassment Settlements
ICN Pharmaceuticals Inc. has been sued by a shareholder who says its chairman’s alleged sexual harassment of employees wrongly cost the company millions.
The suit, filed Monday in Delaware Chancery Court in Wilmington, says the company is believed to have spent $3.5 million or more to settle at least eight cases in which female employees claimed Milan Panic, ICN chairman and chief executive officer, groped them or asked for sex.
Shareholder Andrew White asks a judge to force Panic to pay back all compensation he received from the company while engaging in conduct that opened the company to liability. The suit also asks the judge to order Costa Mesa-based ICN to establish effective programs to prevent sexual harassment in the workplace and to award damages.
“As early as July 1992 company officials knew of Panic’s proclivities and misconduct [but] adopted a corporate policy to keep sexual harassment claims quiet” while paying off the women, White says in the suit, which claims directors wasted corporate assets to the detriment of shareholders.
The suit also says Panic’s actions are well-known to directors. Panic has denied the charges, calling them opportunistic and the result of “simple greed.”
In a prepared statement Tuesday, the company said it can’t comment on specific allegations because it hasn’t seen the lawsuit.
“We can say, however, that there has never been any court finding of sexual harassment or sexual misconduct of any kind against ICN or Mr. Panic,” the company said.
It insisted that the cases against Panic were without merit, adding that the company settled them to avoid “management distractions and publicity.”
The drug maker also has a long-standing policy against sexual harassment, according to the statement.
In October, ICN settled sexual harassment lawsuits brought by a human resources director and an executive secretary, with undisclosed payouts.
In 1996, a former secretary was awarded $3.6 million in a sexual harassment case--the only one the company made Panic pay. Also settled were suits filed by a trade show manager and a customer service representative.
ICN shares fell 13 cents to $25.50 on the New York Stock Exchange.
