According to the latest docket, on May 9, 2002, the Court entered the Stipulation and Order by U.S. District Judge Consuelo B. Marshall authorizing the distribution from the settlement fund, and that the Claims Administrator is authorized to pay itself $524,800.07, in full payment of fees and expenses incurred. Earlier, on October 26, 2000, the Court entered the Order and Final Judgment granting the motion for final approval of the proposed class action settlement and for attorney fees and reimbursement of expenses. The case was dismissed with prejudice and without costs. The Stipulation of Settlement was filed on July 24, 2000 and preliminarily approved on August 2, 2000.

As reported by Total Renal Care Holdings, Inc.’s Form 10-Q For the Quarter Ended September 30, 2000, a total settlement fund of $25 million was established. The Company contributed $10.8 million to the settlement fund while the Company's directors' and officers' liability insurance carriers funded the balance of the settlement fund. In addition, the Company agreed to implement corporate governance principles and procedures to ensure the accountability of its board of directors and management to its shareholders.

The Complaint charges that Total Renal Care and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by misrepresenting or failing to disclose material information about TRL's operations and financial condition. Plaintiff specifically alleges that defendants' statements during the Class Period were false and misleading because the Company, in connection with its acquisition of Renal Treatment Centers, Inc., lacked adequate internal controls to accurately track operating costs and uncollectible receivables. As a result, more than ten months after the Company announced that its integration plan was essentially complete and going smoothly, extraordinary charges of $12.3 million were incurred in the fourth quarter of 1998 without warning to investors. On February 18, 1999, Total Renal Care shocked the investment community with the news that fourth quarter 1998 earnings fell far short of expectations and that Total Renal Care is the target of an SEC inquiry. In response to the Company's February 18, 1999, disclosures, the stock price collapsed on extraordinarily heavy trading from $21.75 per share to $8.875 per share.