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Case Status:    DISMISSED    
On or around 08/26/1996 (Date of order of final judgment)

Filing Date: February 01, 1996

According to the docket, on August 26, 1996, the Court entered the Order dismissing the plaintiff's amended complaint.

According to NuMed Home Health Care, Inc.'s SEC 10-QSB filing, in response to the complaint, the Company filed its answer and a corresponding motion to dismiss. On July 25, 1996, the United States District Court for the Middle District of Florida, Tampa Division, granted the Company's motion dismissing the complaint in its entirety. While the Court granted Plaintiff leave to amend the complaint, the Court indicated its concern for Plaintiff's ability to overcome the complaint's substantial deficiencies.

The complaint was filed alleging that the prospectus was false and misleading because it failed to disclose the lead underwriter's deteriorating financial condition and its inability to satisfy its minimum net capital requirements just prior to the offering. The Prospectus allegedly failed to disclose that a loan made to the underwriter just prior to the offering that allowed it to satisfy it net capital requirements was in fact made by one of the underwriter's officers. The prospectus also allegedly failed to disclose the extent of the conflicts of interest present between the issuer and underwriter. Defendant Jugal Taneja was both Chairman and CEO of NuMed (as well as its primary shareholder) and controlling shareholder of the underwriter. The complaint also alleges that the Prospectus failed to adequately disclose the potential risks of illiquidity in the trading of the stock which would occur if the underwriter was no longer able to make a market in the stock. When the underwriter in fact failed due to insufficient capital, trading in NuMed stock became illiquid and the stock price dropped significantly. Based on these allegations, the complaint asserts violations of sections 11 and 12(2) of the Securities Act of 1933.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NUMD
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: M.D. Florida
DOCKET #: 96-CV-00200
JUDGE: Hon. Ralph W. Nimmons Jr.
DATE FILED: 02/01/1996
CLASS PERIOD START: 02/08/1995
CLASS PERIOD END: 06/28/1995
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Curtis V. Trinko LLP
    16 West 46th Street 7th Floor, Curtis V. Trinko LLP, NY 10036
    212.490.9550 212.986.0158 · ctrinko@trinko.com
  2. LaBarge, Weinstein
    333 Preston St., 11th Floor, LaBarge, Weinstein
    613.231.3000 613.231.3900 · info@lwlaw.com
  3. Michael C. Addison
    P.O. Box 2175, Suite 2175; 100 North Tampa Street, Michael C. Addison, FL 33602-5145
    813.223.2000 813.223.2000 ·
No Document Title Filing Date