Case Page

 

Case Status:    DISMISSED    
On or around 10/28/1999 (Date of order of final judgment)

Filing Date: October 30, 1998

According to the Company’s FORM 10-K For The Fiscal Year Ended December 31, 1999, on October 21, 1999, the United States District Court for the Northern District of Georgia (Atlanta Division) dismissed the consolidated shareholder class action lawsuits. In dismissing the suits, the Court held that the plaintiffs failed to state an actionable claim of material misrepresentation under the federal securities laws. The Court found that the risks of which the plaintiffs complained, those associated with the Company's transition of certain manufacturing operations to its Manchester, Georgia facility, were specifically disclosed by the prospectus. The Court also rejected plaintiffs' claim that the prospectus described certain unfavorable events as mere risks, when in fact those events had already occurred. The Court held that the prospectus contained ample and meaningful cautionary language specifically directed to the substance of the alleged misstatements. The plaintiffs subsequently filed an appeal with the United States Court of Appeals for the Eleventh Circuit. At the plaintiffs' request, the Court of Appeals dismissed the appeal on December 13, 1999, formally concluding the case.

On October 30, 1998 and December 7, 1998, shareholder suits were filed against the Company and certain individual defendants. An amended consolidated complaint, filed on March 8, 1999, added as a defendant Cordova Capital Partners LP – Enhanced Appreciation, one of the Company's institutional investors. The two lead plaintiffs were Daniel E. Herlihy and Thomas L. O'Hara, Jr., and the other named plaintiff was Jack Edery. The amended consolidated complaint was filed in the U.S. District Court for the Northern District of Georgia (Atlanta Division) and sought class certification and rescissory and/or compensatory damages as well as expenses of litigation. The complaint alleged that the prospectus and registration statement used by the Company in connection with the April 1998 initial public offering of the Company's common stock contained material omissions and misstatements.

The original complaint alleges that Horizon Medical and certain of its officers and directors violated Sections 11 and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the prospectus and registration statement Horizon Medical issued in connection with its initial public offering contained material omissions and misstatements pertaining to the Company's transfer of a significant portion of its manufacturing operations to a new facility, and also failed to disclose material risks associated with Horizon Medical's international operations. The complaint further alleges that certain officers and directors of the Company sold thousands of shares of Horizon Medical common stock realizing millions in proceeds.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HMPS
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: N.D. Georgia
DOCKET #: 98-CV-3161
JUDGE: Hon. G. Ernest Tidwell
DATE FILED: 10/30/1998
CLASS PERIOD START: 04/15/1998
CLASS PERIOD END: 10/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ)
    220 St. Paul Street, Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ), NJ 07090
    908.928.1700 908.301.9008 · blbg@blbglaw.com
  3. 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
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 98-CV-3161
JUDGE: Hon. G. Ernest Tidwell
DATE FILED: 03/08/1999
CLASS PERIOD START: 04/15/1998
CLASS PERIOD END: 10/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. 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
No Document Title Filing Date
No Document Title Filing Date