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Case Status:    SETTLED
On or around 06/12/2003 (Date of order of final judgment)

Filing Date: October 28, 1997

According to the June 12, 2003 docket, the court entered its Order and Final Judgment dated June 12, 2003. The case is closed.

Following the October 27, 1997 decline in the price per share of the Company's common stock, purported securities class action lawsuits were filed on October 28, 29, and 30, 1997 against the Company and certain of its officers in the United States District Courts for the Eastern District of New York, the Southern District of New York and the District of Connecticut. After that time, plaintiffs filed additional securities class actions against Oxford and certain of its directors and officers in the United States District Courts for the Southern District of New York, the Eastern District of New York, the Eastern District of Arkansas, and the District of Connecticut.

The complaints generally allege that defendants violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder by making false and misleading statements and failing to disclose certain allegedly material information regarding changes in Oxford's computer system, and the Company's membership enrollment, revenues, medical expenses, and ability to collect on its accounts receivable. Certain of the complaints also assert claims against the individual defendants alleging violations of Section 20(a) of the Exchange Act and claims against all of the defendants for negligent misrepresentation. The complaints also allege that certain of the individual defendants disposed of Oxford's common stock while the price of that stock was artificially inflated by allegedly false and misleading statements and omissions

On October 2, 1998, the co-lead plaintiffs filed a consolidated amended complaint ("Amended Complaint") in the securities class actions. The Amended Complaint names as defendants Oxford, Oxford Health Plans (NY), Inc., KPMG Peat Marwick LLP (which was Oxford's outside independent auditor during 1996 and 1997) and several current or former Oxford directors and officers (Stephen F. Wiggins, William M. Sullivan, Andrew B. Cassidy, Brendan R. Shanahan, Benjamin H. Safirstein, Robert M. Smoler, Robert B. Milligan, David A. Finkel, Jeffery H. Boyd, and Thomas A. Travers). The Amended Complaint purports to be brought on behalf of purchasers of Oxford's common stock, purchasers of Oxford call options or sellers of Oxford put options during the period from November 6, 1996 through December 9, 1997 ("Class Period") and on behalf of persons who, during the Class Period, purchased Oxford's securities contemporaneously with sales of Oxford's securities by one or more of the individual defendants. The Amended Complaint alleges that defendants violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder by making false and misleading statements and failing to disclose certain allegedly material information. The Amended Complaint also asserts claims against the individual defendants alleging violations of Sections 20(a) and 20A of the Exchange Act by virtue of the individual defendants' sales of shares of Oxford's common stock while the price of that common stock was allegedly artificially inflated by allegedly false and misleading statements and omissions. The Amended Complaint seeks unspecified damages, attorneys' and experts' fees and costs, and such other relief as the court deems proper.

The defendants filed motions to dismiss the Amended Complaint which were later defeated. Discovery commenced in 1999. On Januay 10, 2003, the defendants filed motions for summary judgment. Their motions were terminated by the Memorandum and Order dated March 7, 2003. Just as trial was about to begin, the parties decided to settle the action.

On April 14, 2003, the Company, the director and officer defendants and the plaintiffs entered into a stipulation setting out the terms of the Settlement and the Court entered an order preliminarily approving the Settlement, subject to a settlement fairness hearing to be held before the Court on June 11, 2003. Also, in connection with the Settlement: (i) plaintiffs settled the class's claims against KPMG LLP for $75 million and (ii) a derivative shareholder action against KPMG LLP in the name of the Company pending in state court is to be dismissed with prejudice.

On April 17, 2003, the Company deposited $100 million into the escrow account established to hold its portion of the settlement funds; the Company will deposit its remaining obligation on the balance of the $225 million settlement into the escrow account on or before May 6, 2003. The Company previously incurred a pretax charge of $151.3 million, representing a previous $161.3 million settlement offer net of $10 million in primary directors and officers insurance coverage, and a $20 million charge for additional legal expenses related to trial. In connection with the Settlement, the Company incurred an additional pretax charge of $45 million in the first quarter of 2003, which charge, along with prior charges, fully covers all of the Company's expenses relating to the Settlement, and related legal fees and expenses.

Under the insurance carriers' interpretation of the Excess Insurance policies, the Company must pay a $161.3 million retention and the additional $8 million premium, and, if the Excess Insurance carriers fully participated in the Settlement, the Company would have to pay approximately $6.4 million in co-insurance. Under the Company's interpretation of the Excess Insurance policies, the Company must pay a $151.3 million retention, the additional $8 million premium and approximately $7.4 million in co-insurance if the insurance carriers fully participated in the Settlement.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Accident & Health)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: OXHP
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: S.D. New York
DOCKET #: 97-CV-2295
JUDGE: Hon. Dominic J. Squatrito
DATE FILED: 10/28/1997
CLASS PERIOD START: 11/06/1996
CLASS PERIOD END: 10/24/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Harris, Beach & Wilcox, LLP
    Two World Trade Center 85th Floor, Harris, Beach & Wilcox, LLP, NY 10048
    212.687.0100. ·
  2. Hurwitz & Sagarin
    147 North Broad St., Po Box 112, Hurwitz & Sagarin, CT 06460-0112
    203.877.8000 ·
  3. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  4. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 21-MC-00076
JUDGE: Hon. Dominic J. Squatrito
DATE FILED: 10/02/1998
CLASS PERIOD START: 11/06/1996
CLASS PERIOD END: 12/09/1997
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. Barrack, Rodos & Bacine (former New York)
    170 E. 61st Street, Second Floor, Barrack, Rodos & Bacine (former New York), NY 10021
    212.688.0782 212.688.0783 · info@barrack.com
  3. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  4. 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
  5. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  6. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  7. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  8. Grant & Eisenhofer (Wilmington)
    1201 N. Market Street, Suite 2100, Grant & Eisenhofer (Wilmington), DE 19801
    302.622.7000 302.622.7100 · lawyers@gelaw.com
  9. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
  10. 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
  11. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  12. Schoengold Sporn Laitman & Lometti PC
    19 Fulton Street, Suite 406, Schoengold Sporn Laitman & Lometti PC, NY 10038
    212.964.0046 212.267-8137 · shareholderrelations@spornlaw.com
  13. Sirota & Sirota LLP
    110 Wall Street 21st Floor, Sirota & Sirota LLP, NY 10005
    888.759.2990 212.425.9093 · Info@SirotaLaw.com
  14. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  15. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date