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Case Status:    SETTLED
On or around 04/29/1998 (Date of order of final judgment)

Filing Date: August 19, 1996

According to closing Order, dated March 27, 1998, from the U.S. District Judge Thomas W. Thrash of the U.S. District Court for the Northern District of Georgia, the case was dismissed with prejudice of all parties to consolidated actions, including Settlement Class and Settlement Sub-Class members.

Following the announcement of the investigation by the United States Attorney's Office for the Central District of California, Medaphis, various of its current and former officers and directors and the lead underwriters associated with Medaphis' public offering of Common Stock in April 1995, were named as defendants in putative shareholder class action lawsuits filed in the United States District Court for the Northern District of Georgia. In general, these lawsuits alleged violations of the federal securities laws in connection with Medaphis' public statements and filings under the federal securities acts, including the registration statement filed in connection with Medaphis' public offering of Common Stock in April 1995. On October 13, 1995, the named plaintiffs in these lawsuits filed a consolidated class action complaint (the "Consolidated Complaint"). On January 3, 1996, the court denied defendants' motion to dismiss the Consolidated Complaint, which argued that the Consolidated Complaint failed to state a claim upon which relief may be granted. On April 11, 1996, certain of the named plaintiffs to the Consolidated Complaint voluntarily dismissed with prejudice all of their claims. As a result of these dismissals, the Consolidated Complaint no longer contained any claims based on the Securities Act of 1933, as amended (the "1933 Act"), and the Company's underwriters and outside directors were no longer named as defendants. On June 26, 1996, the court denied plaintiffs' motion to certify plaintiffs' class. One of Medaphis' directors and officers' liability insurance carriers has paid $3.7 million of the 1995 Class Action Settlement. The Company accrued approximately $1.2 million in the quarter ended December 31, 1996 for the anticipated balance of the 1995 Class Action Settlement and to pay certain fees incident thereto. On November 6, 1997, the Company paid the remaining $1.05 million balance of the settlement.

The original complaint charges Medaphis and certain of its officers with violations of
the federal securities laws (Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934), among other things, by misrepresenting and/or omitting
material facts concerning the extent of the problems affecting the re-
engineering and consolidation of the Company's largest operating subsidiary,
Medaphis Physician Services Corp., and the existence of serious management,
operational and other problems at the Company's Imonics subsidiary. On August
14, 1996, Medaphis announced, among other things, that it expects to report a
loss in the range of 28 to 33 cents per share in the current quarter, including
charges in the range of $35 million to $40 million.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MEDA
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Georgia
DOCKET #: 96-CV-2088
JUDGE: Hon. Frank M. Hull
DATE FILED: 08/19/1996
CLASS PERIOD START: 03/13/1996
CLASS PERIOD END: 08/14/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 96-CV-2088
JUDGE: Hon. Frank M. Hull
DATE FILED: 09/04/1996
CLASS PERIOD START: 03/13/1996
CLASS PERIOD END: 08/14/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (former New York)
    170 E. 61st Street, Second Floor, Barrack, Rodos & Bacine (former New York), NY 10021
    212.688.0782 212.688.0783 · info@barrack.com
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. Carr, Tabb & Pope
    1355 Peachtree Street, N.E., Suite 2000, Carr, Tabb & Pope, GA 30309
    404.876.7790 ·
  4. Chitwood & Harley LLP (Atlanta)
    7945 East Paces Ferry Road, 1400 Resurgens Plaza, Chitwood & Harley LLP (Atlanta), GA 30326
    404.266.1650 · info@chitwoodlaw.com
No Document Title Filing Date
No Document Title Filing Date