011129 Complaint Filed Against Irradiation Companies

Washington - Public Citizen filed a complaint with the .S. Securities and Exchange Commission against two leading irradiation companies -- Titan Corp. and its spinoff SureBeam Corp. -- because he companies have disseminated false and misleading information about their operations for nearly two years.

In all but one of their 49 press releases issued from January 4, 2000 through October 17, 2001, the San Diego-based companies referred to their food treatment process as "electronic pasteurization," not "irradiation." Upon reading the press releases, current or prospective investors in Titan or SureBeam could be led to believe that the companies' process is a form of pasteurization.

(Editor’s Note: Following is one of the definitions of “pasteurization” offered by the American Heritage Dictionary: “The act or process of destroying most microorganisms in certain foods, such as fish or clam meat, by irradiating them with gamma rays or other radiation to prevent spoilage.”)

Irradiation uses extremely high doses of ionizing radiation to kill microorganisms. In contrast, pasteurization kills microorganisms with heat. Irradiation can significantly alter the chemical structure of food; result in the formation of compounds known or suspected to cause cancer and birth defects; destroy vitamins and other nutrients; and corrupt flavor, texture and odor. Irradiation can also result in the formation of ozone, a main ingredient of smog.

The complaint was filed under SEC Rule 10b-5, which makes it "unlawful ... to make any untrue statement of a material fact or to omit to state a material fact." The complaint was also filed under Section 10(b) of the Securities Exchange Act of 1934, makes it "unlawful ... to use or employ ... any manipulative or deceptive device or contrivance."

SureBeam and Titan continue to call their process "electronic pasteurization" even though the USDA officially considers this phrase "misleading." And, the Federal Trade Commission is currently conducting an inquiry into the companies' advertising practices, following a complaint filed by Public Citizen in August.

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