DEGULIS v. LXR BIOTECHNOLOGY, INC.

Nos. 95 Civ. 4204 (RWS), 95 Civ. 4299 (RWS), 95 Civ. 4298 (RWS), 95 Civ. 6422 (RWS) and 95 Civ. 7215 (RWS).

928 F.Supp. 1301 (1996)

Joseph DEGULIS, Plaintiff, v. LXR BIOTECHNOLOGY, INC., Mark S. Germain, L. Scott Minick, Mark J. Tomei, James D. Coombes, David Blech, D. Blech & Company, Inc. and Shoenberg Hieber, Inc., Defendants. George KOZLOSKI, Plaintiff, v. INTELLIGENT SURGICAL LASERS, Heinz R. Gisel, Ted G. White, Edward M. Lake, Robert J. Feeney, Jr., Anthony B. Envin, Robert J. Kunze, Ann H. Lamont, C. Christian Von Weizsacker, David Blech, and D. Blech & Co., Inc., Defendants. John DEGULIS, Plaintiff, v. ARIAD PHARMACEUTICALS, INC., Harvey J. Berger, Edgar Haber, David Blech, D. Blech & Co., Inc. and Shoenberg Hieber, Inc., Defendants. Bernard WEISS, et al., Plaintiffs, v. David BLECH, Texas Biotechnology Corporation, John M. Pietruski, David B. McWilliams, Richard A.F. Dixon, Stephen L. Mueller, John R. Plachetka, Joseph M. Welch, James T. Willerson, D. Blech & Co., Inc. and Issac Blech, Defendants. Robert KATZ, on behalf of himself and all others similarly situated, Plaintiffs, v. David BLECH, LXR Biotechnology, Inc., Mark S. Germain, L. Scott Minick, Mark J. Tomei, James D. Coombes and Christopher S. Henney, Defendants.

United States District Court, S.D. New York.

June 6, 1996.


Attorney(s) appearing for the Case

Milberg Weiss Bershad Hynes & Lerach, New York City (David J. Bershad, Richard H. Weiss, Brad N. Friedman, of counsel), Chair of Plaintiffs' Executive Committee, Kaplan, Kilsheimer & Fox, New York City (Robert N. Kaplan, Richard J. Kilsheimer, of counsel), Gilman and Pastor, Boston, MA (Kenneth G. Gilman, Peter Lagoria, of counsel), Bernstein Liebhard & Lifshitz, New York City (Sandy A. Liebhard, of counsel), Members of Plaintiffs' Executive Committee, for Plaintiffs.

Michael J. Pucillo, Wendy H. Zoberman, West Palm Beach, FL, Sullins, Johnston, Rohrbach & Magers, Houston, TX (Herbert T. Schwartz, of counsel), Kipnis, Tescher, Lippman, Valinsky & Kain, Ft. Lauderdale, FL (Howard Tescher, of counsel), for Bernard Weiss.

Zwerling, Schachter, Zwerling & Koppell, New York City (Robert S. Schacter, Mary E. Neu, of counsel, Berman DeValerio, Pease & Tabacco, San Francisco, CA (Joseph J. Tabacco, Jr., Nicole Lavallee, of counsel), Goodkind Labaton Rudoff & Sucharow, New York City (Joel H. Bernstein, of counsel), for Robert Katz.

Robinson Silverman Pearce Aronsohn & Berman, New York City (Eric Rieder, Noah M. Weissman, of counsel), for Defendant Mark S. Germain.

Paul, Weiss, Rifkind, Wharton & Garrison, New York City (Max Gitter, of counsel), for Defendants Ariad Pharmaceuticals, Inc., Harvey J. Berger and Edgar Haber.

Morgan, Lewis & Bockius, New York City (Michele Connaughton, of counsel), for Defendants Intelligent Surgical Lasers, Inc., Heinz R. Gisel, Ted G. White, Edward M. Lake, Robert J. Fenney, Jr., Anthony B. Envin, Robert J. Kunze, Ann H. Lamont and C. Christian Von Weizsacker.

Thelen, Marrin, Johnson & Bridges, New York City (Jonathan E. Polonsky, of counsel), for Defendants LXR Biotechnology, Inc., Mark J. Tomei, James D. Coombes, L. Scott Minick and Christopher S. Henry.

Porter & Hedges, Houston, TX (Mark K. Glasser, of counsel), Miller & Wrubel, New York City (Martin D. Edel, of counsel), for Defendants Texas Biotechnology Corp., John M. Pietruski, David B. McWilliams, Richard A.F. Dixon, Stephen L. Mueller, John R. Plachetka, Joseph M. Welch and James T. Willerson.


OPINION

SWEET, District Judge.

Defendants in four related cases arising under Sections 11, 12(2) and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. §§ 77k(a), 77l(a)(2), 77o, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b), 78t(a), have moved to dismiss the claims against them pursuant to Federal Rule of Civil Procedure Rule 9(b) on the ground...

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