ICN Sues Dissidents in Proxy Battle

In an increasingly bitter proxy fight, ICN Pharmaceuticals Inc. sued dissident shareholder Special Situations Partners Inc. and others, accusing them of giving shareholders false and misleading information.

Special Situations, which owns about 4% of the Costa Mesa drug maker, has three nominees vying for the ICN board at the firm’s May 30 annual meeting. Dissident shareholders criticize ICN for its slow pace in splitting into three companies.

In a lawsuit filed in federal court in New York, ICN asked the court to disqualify any votes the dissident groups received since May 3 when they filed a proxy statement with the Securities and Exchange Commission. ICN accuses the dissidents of failing to disclose plans to seize control of the company and sell it.

Shares of ICN closed up 8 cents at $28.92 on the New York Stock Exchange.