Firm in RU-486 Deal Files Fraud Suit

A company involved in a complicated deal to eventually produce the abortion pill RU-486 in the United States filed suit in Los Angeles County Superior Court charging the businessman putting together the arrangement with fraud. Shortly after the suit was filed, the Population Council, which holds U.S. patent rights for the French drug, said it wants the businessman, Joseph D. Pike of San Diego, to relinquish control of companies that would be involved in the American manufacture. In its suit, KCC Delaware, a subsidiary of Los Angeles-based Giant Group, said it paid $6 million for 26% of the entity that owns the sub-licenses to produce, market and manufacture the drug RU-486. KCC, alleging that Pike planned to renege on the deal, filed suit to prevent that, according to Terry Christensen, a lawyer for KCC. The pill, developed as an alternative to surgical abortion, has a potential market of $100 million in the U.S., the suit said. In the suit filed in Santa Monica, KCC charges Pike and the companies with fraud, breach of contract, fraudulent concealment and unfair business practices. Jack Wills, an attorney representing Pike, said he could not comment on the suit.