United States Court of Appeals
                                   Ninth Circuit


      ROBERT POWERS; PETER J.                      ) NO. 98-56997.
      FRANKLIN; SEA BREEZE PRINTING,  ) ARGUED AND SUBMITTED
      INC.; GARVIN D. STANISLAWSKI;  ) JUNE 8, 2000
      STARLOG GROUP, INC. AND                      ) FILED OCT. 20, 2000
      STARLOG GROUP, INC. DEFINED                  )
      PENSION PLAN, ON BEHALF OF                   )
      THEMSELVES AND ALL OTHERS                    )
      SIMILARLY SITUATED; HOWARD  )
      SOBEL; RICHARD STRAUSZ;                      )
      RICHARD W. HALSEY, PLAINTIFFS- )
      APPELLEES, WILFRED GEORGE,                   )
      CLASS MEMBER/OBJECTOR-                       )
      APPELLANT,                                   ))
      VS.                                          )
      PAUL EICHEN; ROBERT JOHNSON;  )
      KENNETH E. OLSON; FREDERICK                  )
      PARKER; MICHAEL TAMKIN;                      )
      MICHAEL VOGT; DENNIS A.                      )
      WHITTLER; MARY ZOELLER;                      )
      ARTHUR MINICH; JOHN M. SEIBER;  )
      JOHN THOMAS; JEFFREY NASH;                   )
      PROXIMA CORPORATION; JOHN E.  )
      REHFELD; CHARLES S.                          )
      CHESTNUTT, DEFENDANTS.                       )))


      Lawrence W. Schonbrun, Law Offices of Lawrence W. Schonbrun, Berkeley,
      California, for the plaintiffs. Keith F. Park, Milberg Weiss Bershad Hynes &
      Lerach LLP, San Diego, California, for the defendants. Robert W. Brownlie,
      Gray Cary Ware & Friedenrich, LLP, San Diego, CA, for amicus curiae
      Proxima Corporation. Appeal from the United States District Court for the
      Southern District of California; Rudi M. Brewster, District Judge, Presiding.
      D.C. No. CV-96-01431- RMB.

      Before: Alex Kozinski, Thomas G. Nelson, and Kim McLane Wardlaw,

Docket as of April 13, 2000 6:02 pm                        Page 1

Proceedings include all events.                                                TERMED
0:97cv1138 In re: Photran Corp Secur
REFER

                                                                     TERMED REFER
                            U.S. District Court
                           District of Minnesota

                    CIVIL DOCKET FOR CASE #: 97-CV-1138

In re: Photran Corp Secur                                            Filed:
05/07/97
Assigned to: Judge Ann D Montgomery                 Jury demand: Both
                  Referred to: Magistrate Judge Arthur J Boylan
Demand: $0,000                                      Nature of Suit: 850
Lead Docket: None                                   Jurisdiction: Federal
Question

Cause: 15:77 Securities Fraud


PHOTRAN CORP. SECURITIES               Richard A Lockridge
LITIGATION                             FAX 6123390981
         In re                         [COR LD NTC]
                                       Patricia A Bloodgood
                                       FAX 6123390981
                                       [COR LD NTC]
                                       Gregg M Fishbein
                                       FAX 6123390981
                                       [COR LD NTC]
                                       Heidi M Drewes-Silton
                                       [COR LD NTC]
                                       Lockridge Grindal Nauen
                                       100 Washington Ave S Ste 2200
                                       Mpls, MN 55401
                                       (612) 339-6900

                                       Charles Harley Johnson
                                       FAX 6516334442
                                       [COR LD NTC]
                                       Johnson & Assoc
                                       2599 Mississippi St
                                       St Paul, MN 55112
                                       651-633-5685

                                     UNITED STATES DISTRICT COURT
                               WESTERN DISTRICT OF WASHINGTON
                                              AT SEATTLE

PETER GREEN, on behalf of himself and all             |
others similarly situated,                            |
                                                      | No. [99-CV-00439]
                      Plaintiff,                      | CLASS ACTION COMPLAINT FOR
           v.                                         || VIOLATION OF THE FEDERAL
PATHOGENESIS CORPORATION,                             | SECURITIES LAWS
WILBUR H. GANTZ and ALAN R. MEYER,  | [filed Mar. 26, 1999]
                                                      |
                      Defendants.                     |
_______________________________________ ||
Plaintiff, by his undersigned attorneys, for this class action complaint, alleges the claims
set forth herein. Plaintiff's claims as to himself and his own actions, as set forth below,
are based upon personal knowledge. All other allegations are based upon the
investigations of counsel, which investigations include reviews of the public filings with
the Securities and Exchange Commission (the "SEC") made by Pathogenesis Corporation
("PGNS" or the "Company"), securities analysts' reports and advisories about the
Company, press releases issued by the Company, media reports about the Company and
other sources. Based upon such investigations, and pursuant to Fed. R. Civ. P. 11(b)(3),
plaintiff believes that, after reasonable opportunity for discovery, substantial evidentiary
support will likely exist for the allegations set forth herein.

                                     I. NATURE OF THE ACTION
1. This is a class action brought on behalf of all persons, other than defendants and
affiliated persons as described below (the "Class"), who purchased or otherwise acquired
the common stock of PathoGenesis Corporation ("PGNS") between January 25, 1999 and
March 22, 1999 (the "Class Period"), alleging violations of the federal securities laws.

2. PGNS is, essentially, a one-product company entirely dependent upon the success of
its formulation of the antibiotic Tobramycin ("TOBI"), an inhaled antibiotic used to treat
cystic fibrosis.

3. Prior to 1998, PGNS had never had a profitable year. Based with this knowledge, the
defendants undertook a scheme to artificially inflate fourth quarter 1998 revenues by
inducing drug wholesalers to overstock their inventories before a seven percent price
increase of TOBI took effect in December of 1998.

4. In response, these drug wholesalers built up their TOBI inventory levels to $16 million
during the fourth quarter of 1998 -- when they had previously carried only $5 million to
$7 million in inventory. Thus, at least $9 million of the "sales" recorded during the fourth