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Case Status:    SETTLED
On or around 08/15/2002 (Date of order of final judgment)

Filing Date: October 23, 1998

On August 15, 2002, the Court entered the Order and Final Judgment by U.S. District William J. Haynes Jr. approving the settlement and dismissing claims with prejudice. The plaintiffs were awarded attorney fees and the case was terminated. Earlier, on November 9, 2000, Judge Haynes granted the motion to dismiss the consolidated amended complaint as to certain Individual Defendants and denied the motion as to defendants Quorum Health Corporation and the remaining Individual Defendant.

The complaint charges Quorum and others with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that defendants issued false and misleading press releases and reports for each of the fiscal years ended June 30, 1998, 1997 and 1996, and for each of the fiscal quarters therein, because the net accounts receivable, net operating revenue, net patient services revenue, net income and net income per common share disclosed in those press releases and reports were materially overstated. The overstatements are alleged to have resulted from a company-wide scheme that has been ongoing since at least 1984 by which Quorum filed false reimbursement claims with Medicare and Medicaid. Quorum's scheme recently came to light when it disclosed that, after a six year investigation into Quorum's cost reporting practices, the federal government had intervened in a Civil False Claims Act lawsuit against Quorum.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: QHGI
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-1004
JUDGE: Hon. John T. Nixon
DATE FILED: 10/23/1998
CLASS PERIOD START: 10/25/1995
CLASS PERIOD END: 10/21/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  2. Beatie & Osborne LLP
    599 Lexington Avenue, 42nd Floor, Beatie & Osborne LLP, NY 10022
    212.888.9000 212.888.9664 ·
  3. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  4. 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
  5. Chernau, Chaffin & Burnsed, P.C.
    424 Church Street, Suite 1750, SunTrust Center, Chernau, Chaffin & Burnsed, P.C., TN 37219
    615.244.5480 ·
  6. Lackey, Rodgers, Price & Snedeker
    315 Deaderick St. # 1230, Lackey, Rodgers, Price & Snedeker, TN 37238
    615.244.5770 ·
  7. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 98-CV-1004
JUDGE: Hon. John T. Nixon
DATE FILED: 03/08/1999
CLASS PERIOD START: 10/25/1995
CLASS PERIOD END: 10/21/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  2. Beatie & Osborne LLP
    599 Lexington Avenue, 42nd Floor, Beatie & Osborne LLP, NY 10022
    212.888.9000 212.888.9664 ·
  3. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  4. Chernau, Chaffin & Burnsed, P.C.
    424 Church Street, Suite 1750, SunTrust Center, Chernau, Chaffin & Burnsed, P.C., TN 37219
    615.244.5480 ·
  5. Lackey, Rodgers, Price & Snedeker
    315 Deaderick St. # 1230, Lackey, Rodgers, Price & Snedeker, TN 37238
    615.244.5770 ·
  6. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date