Case Page

 

Case Status:    SETTLED
On or around 08/09/1999 (Date of order of distribution of settlement)

Filing Date: April 15, 1996

According to the Company’s Form 10-Q for the quarterly period ended March 31, 1998, in November, 1997, a comprehensive settlement of a number of shareholder
lawsuits filed in 1996 and consolidated into one action in federal court in the
Western District of Pennsylvania (Butler v. Northstar, No. 96-701 W.D. Pa) was
given final approval by the court. The lawsuit alleged violations of federal
securities laws by the Company and certain of its former officers and directors,
and an alleged scheme to disseminate false and misleading information regarding
the Company. This action was described in the Company's Form 10-K filing for the
fiscal year ended December 31, 1996. In December 1997, with no party having
appealed the order approving the settlement, the decision became final. The
settlement agreement which was approved by the court, created a settlement fund
of $6.45 million, of which $5.75 million, less expenses and legal counsel fees,
will be paid to those Northstar shareholders who submitted proofs of claim by
December 27, 1997, which the court approves as valid claims. The Company
contributed $100,000 to the $6.45 million settlement fund; the insurer on the
Company's directors and officers' liability policy contributed the $1.0 million
limits of coverage of that policy; and the $5.35 million balance in the fund was
contributed by other defendants.

As reported in the Company’s Form 10-K for the fiscal year ended December 31, 1996, in April 1996, the first of seven class action lawsuits against
Northstar and certain of its former officers and directors was filed in federal
court by Northstar shareholders; all of such suits were consolidated into one
action (No. 96-1399 W.D. Pa.). The suit alleges violations of federal
securities laws by Northstar and its former officers and directors in connection with the defendants' alleged scheme to disseminate false
and misleading information regarding the Company, its operations, financial
status and related-party transactions and to enrich themselves in the process.
Settlement negotiations, which also involve Richard A. Eisner & Co., LLP,
Northstar's former independent accountant and auditor, are continuing, and the
plaintiffs have claimed damages of approximately $20,000,000.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NSTR
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: W.D. Pennsylvania
DOCKET #: 96-CV-701
JUDGE: Hon. Donald E. Ziegler
DATE FILED: 04/15/1996
CLASS PERIOD START: 03/17/1994
CLASS PERIOD END: 03/26/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy & Squiteri LLP (San Francisco)
    595 Market Street, Suite 2500, Abbey Gardy & Squiteri LLP (San Francisco), CA 94105
    415.538.3725 ·
  2. Alfred G. Yates, Jr. Law Firm
    429 Forbes Avenue, 519 Allegheny Building, Alfred G. Yates, Jr. Law Firm, PA 15219
    412.391.5164 ·
  3. Specter, Specter, Evans & Manogue
    Koppers Building, 26th Floor, Specter, Specter, Evans & Manogue, PA 15219
    412.642.2300 ·
No Document Title Filing Date
COURT: W.D. Pennsylvania
DOCKET #: 96-CV-701
JUDGE: Hon. Donald E. Ziegler
DATE FILED: 09/05/1996
CLASS PERIOD START: 05/17/1994
CLASS PERIOD END: 03/26/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. LEVI & KORSINSKYY
    212 East 39TH Street, LEVI & KORSINSKYY, NY 10016
    212.889.3700 ·
  2. Lowey, Dannenberg, Bemporad & Selinger, P.C.
    1 North Lexington Avenue, 11th Floor, Lowey, Dannenberg, Bemporad & Selinger, P.C., NY 10601-1714
    914.997.0500 914.997.0035 · ldbs@wesetnet.com
  3. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
No Document Title Filing Date