Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

I've said previously that the Sullivan letter's purpose, other than to continue to try to get Rosen to throw in the towel, was to talk the judge out of allowing a second amended complaint.

The most interesting bit of the Rosen response for me was his attempt to show the justification for them to make such a filing.

"In addition, if granted leave to amend, the Complaint will include new allegations showing that Defendants have previously exaggerated Menon’s role in the development of important drugs for Eli Lily, falsely claimed that prominent scientists were scientific advisors for Cellceutix, affiliated with aggressive boiler room stock promoters, and have previously been affiliated with numerous failed companies. Plaintiff has also, since filing the First Amended Complaint, have obtained additional information that, upon further investigation, may shed further light on Defendants’ scienter."


Scienter

[Latin, Knowingly.] Guilty knowledge that is sufficient to charge a person with the consequences of his or her acts.

The term scienter refers to a state of mind often required to hold a person legally accountable for her acts. The term often is used interchangeably with Mens Rea, which describes criminal intent, but scienter has a broader application because it also describes knowledge required to assign liability in many civil cases.
http://legal-dictionary.thefreedictionary.com/Scienter