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Case Status:    SETTLED
On or around 08/12/1999 (Date of order of final judgment)

Filing Date: November 14, 1997

According to the firm's 10-K filing dated March 30, 2000, on August 10, 1999, the District Court approved an agreement settling all of the pending class actions in consideration primarily of (i) a payment of $2.75 million to be provided by the Company's insurer and (ii) the issuance of $5.25 million of convertible subordinated promissory notes (the "Convertible Subordinated Notes"). The $5.25 million of Convertible Subordinated Notes bear interest at the rate of 8% per annum, will be due on the earlier of August 1, 2005 or when the Company's presently outstanding Senior Notes are paid in full, and may be prepaid in cash by the Company at any time after issuance subject to the payment of a prepayment premium which begins at 8% and decreases over time. Additionally, the Convertible Subordinated Notes are convertible into shares of the Company's Common Stock beginning February 15, 2000 at a price per share equal to $2.62.

On February 9, 1998, the Honorable Joel Pisano, United States Magistrate Judge, entered an Order consolidating several class actions for all purposes. On March 31, 1998, the lead plaintiffs in the consolidated class actions served their Consolidated Class Action Complaint, asserting that the Company and the named defendants violated Section 10(b) of the Exchange Act, and that certain named defendants violated Sections 20(a) and 20A of the Exchange Act. On December 18, 1998, attorneys for the plaintiffs in the pending class actions reached an agreement in principle with the Company and certain of the other defendants to settle all of the
pending class actions

The original Complaint alleges that during the Class Period, MRII and certain of its directors and officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making misrepresentations and omissions of material fact about the Company's financial condition and operations. As alleged in the Complaint, throughout the Class Period, defendants misrepresented that MRII was achieving record revenues and profits from its expansion into additional medical imaging markets. In fact, defendants knew or were reckless in failing to know that the foregoing expansion was motivated primarily by a desire to pay affiliates of MRIIs Chairman excessive advisory, financing and acquisition fees, and that the terms of those payments were substantially more favorable than they would have been to an unrelated third party.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MRII
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: D. New Jersey
DOCKET #: 97-CV-05531
JUDGE: Hon. William H. Walls
DATE FILED: 11/14/1997
CLASS PERIOD START: 05/15/1997
CLASS PERIOD END: 11/07/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Goldstein Lite & DePalma LLC
    Two Gateway Center, 12th Floor, Goldstein Lite & DePalma LLC, NJ 07102
    ·
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 97-CV-05531
JUDGE: Hon. William H. Walls
DATE FILED: 04/01/1998
CLASS PERIOD START: 05/15/1997
CLASS PERIOD END: 11/07/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Kantrowitz, Goldhamer & Graifman
    747 Chestnut Ridge Road, Kantrowitz, Goldhamer & Graifman, NY 10977
    845.356.2570. 845.356.4335 ·
  3. Lite, DePalma, Greenberg & Rivas, LLC (Newark)
    Two Gateway Center, 12th Floor, Lite, DePalma, Greenberg & Rivas, LLC (Newark), NJ 07102-5003
    973.623.3000 ·
No Document Title Filing Date
No Document Title Filing Date