Schein Pharmaceutical, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

Schein Pharmaceutical, Inc. Conclusion: According to the latest docket posted, on December 12, 2000, the Court entered the Order and Final Judgment signed by U.S. District Judge John C. Lifland. The Court approved the settlement and awarded fees and expenses to the counsel for the plaintiffs and the class. The case is closed.

Pursuant to the Settlement described in the Notice Of Pendency Of Class Action, the proposed settlement amount is $8,000,000 in cash. A hearing will be held on December 7, 2000, to determine whether a proposed settlement of the above-captioned action as set forth in the Stipulation and Agreement of Settlement dated September 15, 2000, is fair, reasonable and adequate and to consider the application of plaintiffs' counsel for attorneys' fees and reimbursement of expenses.

As reported by the Company’s FORM 10-Q for the quarterly period ended June 24, 2000, in September and October 1998, following the commencement of the seizure action by the FDA against Steris on September 10, 1998, a number of substantially similar class action complaints asserting claims under the federal securities laws were filed in federal court in the District of New Jersey against the Company and certain of its officers and directors. On December 21, 1998, the court entered an order consolidating the actions, appointing lead plaintiffs and approving selection of lead and liaison counsel. On or about March 29, 1999, lead plaintiffs filed a consolidated and amended class action complaint (the Complaint), naming as defendants the Company, its directors at the time of the Company's April 9, 1998 initial public offering (the Offering), and three of the underwriters of the Offering. In May 1999, the Company and the other defendants in this action filed a motion to dismiss the Complaint. In March 2000, and prior to any decision on the motion to dismiss, plaintiffs and defendants entered into a Memorandum of Understanding (MOU) to settle the actions.

The original action charges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. Specifically, it is alleged that the Registration Statement and Prospectus issued in connection with the IPO contained material misstatements and omissions of material facts concerning the Company's compliance with FDA rules and regulations in its manufacturing process. On Sept. 10, 1998, Schein announced that the FDA filed a seizure action against all products manufactured by its Steris Laboratories, Inc. plant in Phoenix. In response to this news, the price of Schein common stock plummeted 53% in one day, from $23.75 to close at $11.6875 on Sept. 11, 1998.

INDUSTRY CLASSIFICATION:
SIC Code: 2834
Sector: Healthcare
Industry: Biotechnology & Drugs

COMPANY/ISSUER NAME:	Schein Pharmaceutical, Inc.
COMPANY/ISSUER TICKER:	SHP
COMPANY WEBSITE:	http://www.schein-rx.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Lazar, et al. v. Schein Pharmaceutical, Inc., et al.

COURT: D. New Jersey	DOCKET NUMBER: 98-CV-4311
JUDGE NAME: Hon. John C. Lifland
DATE FILED: 09/14/1998	SOURCE: Internet
CLASS PERIOD START: 04/09/1998	CLASS PERIOD END: 09/10/1998
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA) 600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101 (voice) 800.449.4900, (fax) , support@milberg.com Pomerantz Haudek Block Grossman & Gross LLP 100 Park Avenue, 26th Floor, New York, NY, 10017-5516ven (voice) 212.661.1100, (fax) 212.661.8665, info@pomerantzlaw.com/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT

Type:		Date on the document:

REFERENCE COMPLAINT

In re Schein Pharmaceutical, Inc. Securities Litigation

COURT: D. New Jersey	DOCKET NUMBER: 98-CV-4311
JUDGE NAME: Hon. John C. Lifland
DATE FILED: 03/29/1999	SOURCE: Business Wires
CLASS PERIOD START: 04/09/1998	CLASS PERIOD END: 09/28/1998
TYPE OF COMPLAINT: First Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cohn, Lifland, Pearlman, Herrmann & Knopf Park 80 Plaza West-One, Saddle Brook, NJ, 7663 (voice) 201845.9600, (fax) , info@njlawfirm.com Epstein, Fitzsimmons, Brown, Ringle, Gioia & Jacobs 245 Green Village Road - P.O. Box 901, Chatham, NJ, 07928 (voice) 973.593.4900, (fax) , Lite, DePalma, Greenberg & Rivas, LLC Two Gateway Center, 12th Floor, Newark, NJ, 07102-5003y C (voice) 973.623.3000, (fax) , Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY) One Pennsylvania Plaza, New York, NY, 10119-1065 (voice) 212.594.5300, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE REFERENCE COMPLAINT
Notice Of Pendency Of Class Action, Hearing On Proposed Settlement And Attorneys' Fee Petition And Right To Share In Settlement Fund
Type: Settlement		Date on the document: 10/06/2000
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/07/2002

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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