Last week we discussed the racketeering lawsuit by Biovail and the Kasnowitz, Benson law firm.

Today, this article from Law.Com relates that Biovail has re-hired the Kasnowitz law firm who has appeared for it in NJ.

"Biovail Corp. has taken a page from the George Steinbrenner/Billy Martin playbook in order to reignite its well-publicized conspiracy suit against short-sellers and analysts. The Canadian drugmaker has rehired its former lead firm in the case — Kasowitz, Benson, Torres & Friedman. Biovail fired Kasowitz last March amid legal proceedings surrounding the company’s misuse of court-protected documents.

The suit began in February 2006, when Biovail sued analysts and hedge funds, including SAC Capital and its founder Steven Cohen, in New Jersey state court. Biovail claims that it was the victim of a conspiracy to spread false information about it in an effort to depress its stock and profit. The company’s chairman at the time, Eugene Melnyk, appeared on "60 Minutes" to tout the complaint.

But the company’s suit has been stalled since January, when Manhattan federal district court Judge Richard Owen ruled that Biovail violated a protective order in his courtroom where the company is a defendant in a shareholder class action. Specifically, Owen found that Biovail had used court-protected documents it had subpoenaed from Banc of America to support its allegations in the New Jersey case.

The dispute was embarrassing and costly for both Biovail and its lawyers. It was amidst the hearings that Biovail fired the Kasowitz Benson firm. "