The final Judgment, issued pursuant to the Court's Order, was entered on December 16, 1997. The case was dismissed with prejudice after a settlement had been reached by the parties. The stipulation of the settlement was filed in court on October 1, 1997. A distribution of funds to the class was ordered, along with a monetary award to the class counsel to cover attorney's fees and expenses.
The original complaint charges Physician Reliance, certain of its officers and
directors, and Texas Oncology, P.A. ("TOPA") with violations of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and related state law by,
among other things, misrepresenting and/or omitting material information
concerning the Company's relationship with TOPA and its Medicare billing
practices. The complaint alleges that throughout the Class period defendants
engaged in a series of convoluted transactions between the Company and TOPA,
among others, and that these unusual transactions deceptively overstated the
Company's financial condition at all relevant times, in addition to violating
applicable laws relating to Medicare reimbursement. Further, the complaint alleges that by issuing a series of false and misleading statements, the price of
Physician Reliance stock was artificially inflated during the Class Period,
reaching a Class Period high of $27.25 per share (giving effect to a two-for-
one stock split during the Class Period), before collapsing to as low as $13.00
per share on July 29, 1996.