Date: Tue, 4 Apr 2000 17:01:30 EDT

UPDATE 1-U.S. lawmaker seeks probe of

WASHINGTON (Reuters) - The chairman of the House Commerce Committee said Tuesday he had asked federal securities regulators to check a breast implant maker's denials about a Food and Drug Administration (FDA) investigation.

Rep. Tom Bliley, a Virginia Republican who chairs the House panel that oversees the FDA, asked the Securities and Exchange Commission to investigate whether breast implant maker Mentor Corp. misled investors last month in a statement denying there was a criminal investigation into possible irregularities in a study of breast implants.

He released a letter dated April 3 alerting the agency to conflicts between the company's March 23 statement and the position of the Food and Drug Administration.

Mentor, which is based in Santa Barbara, Calif., had said it contacted the FDA, which denied that the investigation was connected with allegations of breast implant study irregularities.

Instead, Mentor said, the FDA was investigating 1998 ''manufacturing issues.''

Bliley said he had gone back to the FDA to follow up on Mentor's statement.

``In response to the committee staff's request, the FDA provided a written statement on March 29, 2000, confirming that FDA stands by its statement that described the criminal investigation as relating to 'allegations of serious irregularities in breast implant studies,''' Bliley said.

Mentor general counsel Douglas Altschuler said Tuesday the company stood by its previous statements. ``I don't know, couldn't begin to guess,'' he said about the discrepancy between its statement and the committee's.

Mentor made its original statement in response to a March 23 USA Today article on the probe of study irregularities that sent its stock tumbling. After the Mentor statement its stock price largely rebounded.

Bliley wrote SEC Chairman Arthur Levitt that since Mentor's public statement affected trading of its stock and the information was in conflict with the FDA, ``I am forwarding this matter to the SEC to determine whether federal securities laws were violated.''

The SEC declined to comment. The FDA was not immediately available for comment.

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WASHINGTON, April 4 (Reuters) - The chairman of the House Commerce Committee said on Tuesday he had asked the Securities and Exchange Commission to check a breast implant maker's denials about a Food and Drug Administration (FDA) investigation.

Rep. Tom Bliley, a Virginia Republican who chairs the House Commerce Committee that oversees the FDA, asked the SEC to investigate whether breast implant maker Mentor Corp misled investors last month in denying there was criminal investigation into breast implant study irregularities.

He released a letter dated April 3 alerting the agency to conflicts between the company's March 23 statement and the position of the Food and Drug Administration.

Santa Barbara, California-based Mentor had said it contacted the FDA, which denied that the investigation was connected with allegations of breast implant study irregularities. Instead, Mentor said, the FDA was investigating1998 "manufacturing issues."

But Bliley said he had gone back to the FDA in light of Mentor's statement.

"In response to the Committee staff's request, the FDA provided a written statement on March 29, 2000, confirming that FDA stands by its statement that described the criminal investigation as relating to 'allegations of serious irregularities in breast implant studies,'" Bliley said.

Mentor made the statement in response to a March 23 USA Today article on the probe of study irregularities that sent its stock tumbling. After the Mentor statement its stock price largely rebounded.

Bliley wrote SEC Chairman Arthur Levitt that since Mentor's public statement affected trading of its stock and the information was in conflict with the FDA "I am forwarding this matter to the SEC to determine whether federal securities laws were violated."

A spokeswoman for Mentor had no immediate comment on Bliley's letter. The SEC also declined to comment.

14:53 04-04-00

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WASHINGTON (Reuters) - The chairman of the House Commerce Committee said Tuesday he had asked federal securities regulators to check a breast implant maker's denials about a Food and Drug Administration (FDA) investigation.

Rep. Tom Bliley, a Virginia Republican who chairs the House panel that oversees the FDA, asked the Securities and Exchange Commission to investigate whether breast implant maker Mentor Corp. misled investors last month in a statement denying there was a criminal investigation into possible irregularities in a study of breast implants.

He released a letter dated April 3 alerting the agency to conflicts between the company's March 23 statement and the position of the Food and Drug Administration.

Mentor, which is based in Santa Barbara, Calif., had said it contacted the FDA, which denied that the investigation was connected with allegations of breast implant study irregularities.

Instead, Mentor said, the FDA was investigating 1998 ''manufacturing issues.''

Bliley said he had gone back to the FDA to follow up on Mentor's statement.

``In response to the committee staff's request, the FDA provided a written statement on March 29, 2000, confirming that FDA stands by its statement that described the criminal investigation as relating to 'allegations of serious irregularities in breast implant studies,''' Bliley said.

Mentor general counsel Douglas Altschuler said Tuesday the company stood by its previous statements. ``I don't know, couldn't begin to guess,'' he said about the discrepancy between its statement and the committee's.

Mentor made its original statement in response to a March 23 USA Today article on the probe of study irregularities that sent its stock tumbling. After the Mentor statement its stock price largely rebounded.

Bliley wrote SEC Chairman Arthur Levitt that since Mentor's public statement affected trading of its stock and the information was in conflict with the FDA, ``I am forwarding this matter to the SEC to determine whether federal securities laws were violated.''

The SEC declined to comment. The FDA was not immediately available for comment.

16:15 04-04-00