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Mylan files second lawsuit against Post-Gazette
Tuesday, November 03, 2009

Mylan Pharmaceuticals on Friday filed a second lawsuit against the Pittsburgh Post-Gazette over a July 26 story about an internal report related to the company's Morgantown plant.

The company had already filed a lawsuit over the story in August.

The newest lawsuit, filed in Monongalia County Circuit Court in West Virginia, accuses the newspaper and its staff writers of seeking to shake public confidence in Mylan with the publication of the story. "In doing so, they violated a fundamental principle of journalistic ethics: They manufactured a crisis where none existed," the lawsuit contends.

John Robinson Block, Post-Gazette publisher and editor-in-chief, dismissed the claim.

"Apparently Mylan wasn't satisfied suing the Post-Gazette once, so they've sued us again," Mr. Block said. "Just as with their previous suit, this one is meritless. Our coverage of Mylan's own internal report was meticulously accurate, and we will defend ourselves vigorously."

The July 26 article focused on an internal Mylan report that showed that employees had overridden computer-generated warnings about possible problems in the drug-making process over an extended length of time.

In August, Mylan filed its first lawsuit in Monongalia County against the Post-Gazette and reporters Patricia Sabatini and Len Boselovic, accusing them of improperly obtaining confidential documents and misappropriating trade secrets.

The case was moved to federal court in September.

The new lawsuit says that the story was designed to instill apprehension in the minds of patients, shareholders and the general public "by communicating the frightening fiction that Mylan's pharmaceuticals are 'unsafe.' "

Mylan blames the story for an unusually high volume of trading and wide price fluctuations in company stock the day after the article ran.

The company further accuses the Post-Gazette of acting maliciously and with reckless disregard for the truth. Mylan claims that its Morgantown plant has high quality standards and that the FDA found "no objectionable observations," or problems with product quality related to the story's allegations.

Paula Reed Ward can be reached at pward@post-gazette.com or 412-263-2620.
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First published on November 3, 2009 at 12:00 am