According to the docket dated September 22, 1999, on September 15, 1998, the Court entered the Order by U.S. District Judge Alan S. Gold approving the class settlement and closing the case. The Final Judgment was entered on October 23, 1998.

The original complaint charges U.S. Diagnostic and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. According to the complaint, one of the company's co-founders and a senior executive at the company received compensation identical in amount to the salary paid to the company's chief executive officer. The complaint alleges that during the Class Period, U.S. Diagnostic and the ther defendants failed to disclose that this company co-founder and a senior executive, who the company referred to as one of the members of its "senior management team," pleaded guilty to charges of Conspiracy to Defraud the United States and Fraud, for which he was imprisoned in 1995. The complaint also alleges that this defendant was previously enjoined by the SEC from, among other things, violating federal securities laws, and is or was subject to several other lawsuits alleging securities violations.