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Case Status:    SETTLED
On or around 12/30/2003 (Date of order of final judgment)

Filing Date: August 12, 1996

According to the most recent docket posted, the Court entered the Final Judgment signed by U.S. District Judge Sam A. Lindsay. The Lead Plaintiffs and the Class were awarded $13,750,000 as against the individual defendants. Plaintiffs' Counsel was awarded 33-1/3% of the amounts collected to date in the Gross Settlement Fund in fees and $41,475 in reimbursement of expenses. On June 9, 2005, the Court entered the Motion for Preliminary Approval of the Settlement with Defendants Gulf Insurance Co. and the Foxmeyer Corporation Bankruptcy Trustee.

By the Order entered on December 30, 2003, on September 11, 2002, the parties entered into a Memorandum of Understanding for the purposes of settling the case. The potential value of the Gross Settlement Fund is $14,250,000. This amount consists of an initial recovery of $500,000 in cash from the now bankrupt corporate Defendant and Debtor Avatex (f/k/a Foxmeyer Health Corporation), and an additional settlement amount of $13,750,000 from Individual Defendants. On December 6, 2002, the parties filed a stipulation of settlement. The Court entered the Order preliminarily approving the settlement on December 11, 2002. The Court grants the Applications for Final Approval of the Class Action Settlement and Request for Attorney Fees.

At the Corporation's request, the Court entered a stay of all discovery pending a
ruling on the Corporation's motion to dismiss, which was filed on June 20,
1997. On March 31, 1998, the Court denied the motion to dismiss the amended complaint in the lawsuit.

The Corporation and certain of its current and former officers and directors were named as defendants in a series of purported class actions filed starting in August 1996, and were then later consolidated. These actions purport to be brought on behalf of purchasers of the Corporation's common stock and the Series A and cumulative preferred stock during the period July 19, 1995, through August 27, 1996. Plaintiffs assert violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and seek unspecified money damages. Specifically, the complaints allege that the defendants made materially false and misleading statements and failed to disclose material information concerning a variety of matters, including but not limited to the terms of contracts with major customers, the Corporation's inventory management and order processing systems, and the automated warehouse at Washington Court House, Ohio; and that the Corporation's financial statements were false and misleading.

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