Case Page

 

Case Status:    SETTLED
On or around 07/29/2002 (Date of order of final judgment)

Filing Date: September 09, 1998

According to the latest docket, on April 14, 2002, a Stipulation of Settlement was filed, and on April 22, 2002, the U.S. District Judge Todd J. Campbell preliminarily approved the settlement. The settlement hearing was set for July 26, 2002. At the hearing, Judge Campbell granted the motions for approval of the plan of allocation of the settlement and for approval of the application for an award of attorneys’ fees and reimbursement of expenses. Judge Campbell further issued the Order granting the motion for final approval of the settlement, the action was dismissed with prejudice, and the case was terminated.

As reported in a press release, stockholders of bankrupt PhyCor, Nashville, will receive 16 cents per share under settlement terms of a class-action lawsuit alleging that the company and its executives committed securities fraud and concealed information. The total payment to shareholders who purchased stock from April 22, 1997, to Sept. 22, 1998, will amount to $10 million, according to the agreement struck earlier this month in U.S. District Court in Nashville.

The original complaint names PhyCor and certain of the Company's officers and directors as defendants, alleging that these parties violated Sections 10(b) and 20(a) of the Exchange Act, as well as SEC Rule 10b-5 promulgated thereunder, by originating a series of materially misleading statements and omissions concerning the Company's acquisitions and operations during the Class Period. Plaintiff also alleges that PhyCor and its top executives falsified the Company's reported profits. Specifically, Plaintiff alleges, among other things, that the defendants misrepresented that the Company was successfully integrating the operations of various acquired companies, when, in fact, PhyCor was experiencing severe difficulties assimilating those acquisitions. In addition, Plaintiff alleges that PhyCor touted the Company's growth strategy and ability to achieve promised earnings per share, knowing that PhyCor lacked effective management structure and its business was failing. These misrepresentations and omissions had the aggregate effect of artificially inflating the share prices of PhyCor's stock, allowing PhyCor to continue its acquisition-based growth strategy and the Individual Defendants to sell their own stock for proceeds of more than $17 million. When defendants finally revealed the whole truth, that PhyCor could not grow at promised rates and would take another $65 million charge, PhyCor stock plummeted to $8-1/4, an almost 40% drop in one day.

NOTE: PhyCor and 48 of its subsidiaries filed for Chapter 11 bankruptcy protection in January 2002, listing about $29 million in assets and $339 million in liabilities.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PHYC
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. Tennessee
DOCKET #: 98-CV-00834
JUDGE: Magistrate Judge Joe B. Brown
DATE FILED: 09/09/1998
CLASS PERIOD START: 04/22/1997
CLASS PERIOD END: 07/22/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  2. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  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. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
  5. Wirtz & Associates
    16161 Ventura Boulevard, Suite 669, Wirtz & Associates, CA 91436
    310.576.7770 ·
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 98-CV-00834
JUDGE: Magistrate Judge Joe B. Brown
DATE FILED: 04/09/1999
CLASS PERIOD START: 04/22/1997
CLASS PERIOD END: 09/22/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. Cauley Geller Bowman & Coates LLP (Little Rock)
    P.O. Box 25438, Cauley Geller Bowman & Coates LLP (Little Rock), AR 72221-5438
    501.312.8500 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
No Document Title Filing Date