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Case Status:    SETTLED
On or around 04/01/1999 (Date of order of final judgment)

Filing Date: November 20, 1996

According to the Company’s FORM 10-Q for the quarterly period ended March 31, 1999, in July 1998, the parties executed a stipulation and agreement of settlement in which the Company agreed to pay $21 million in cash to a settlement fund to settle this litigation. The Company paid $0.5 million as an advance to the settlement fund. On July 29, 1998, the court issued a preliminary approval order in which it certified the purported class for settlement purposes. The court held a settlement fairness hearing on December 15, 1998. At that hearing, the court announced its opinion that the settlement was fair and reasonable and should be approved. On April 2, 1999, the remaining balance of the settlement funds in the amount of $20.5 million, plus interest thereon in the amount of $1.4 million, were paid in full settlement of the litigation.

As reported by the same SEC filing, between November 20, 1996 and January 31, 1997, nine shareholder class-action lawsuits were filed against RISCORP and other defendants in the United States District Court for the Middle District of Florida (the "Securities Litigation"). In March 1997, the court consolidated these lawsuits and appointed co-lead plaintiffs and co-lead counsel. The plaintiffs subsequently filed a consolidated complaint. The consolidated complaint named as defendants RISCORP, three of its executive officers, one non-officer director, and three of the underwriters for RISCORP's initial public offering. The plaintiffs in the consolidated complaint purport to represent the class of shareholders who purchased RISCORP's Class A Common Stock between February 28, 1996 and November 14, 1996. The consolidated complaint alleges that RISCORP's Registration Statement and Prospectus of February 28, 1996, as well as subsequent statements, contained false and misleading statements of material fact and omissions, in violation of Sections 11 and 15 of the Securities Act of 1993, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The consolidated complaint seeks unspecified compensatory damages.

The original Complaint alleges that Riscorp, certain of its officers and directors, and the underwriters of the IPO violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing to the investing public false and misleading statements regarding, among other things, Riscorp's financial performance, revenue, and earnings growth and their impact on the company's future. The Complaint alleges that as a result of these misrepresentations and omissions Riscorp's Class A common stock was artificially inflated throughout the Class Period.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Life)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RISC
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. Florida
DOCKET #: 96-CV-2374
JUDGE: Hon. Steven D. Merryday
DATE FILED: 11/20/1996
CLASS PERIOD START: 02/28/1996
CLASS PERIOD END: 11/14/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Bonnett, Fairbourn, Friedman & Balint, PC (Phoenix)
    4041 N. Cental Avenue, Suite 1100, Bonnett, Fairbourn, Friedman & Balint, PC (Phoenix), AZ 85012-3311
    602.274.1100 ·
  3. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  4. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  5. James, Hoyer & Newcomer, P.A.
    One Urban Centre, suite 147, 4830 West Kennedy Boulevard, James, Hoyer & Newcomer, P.A., FL 33609
    813286.4100 · choyer@jameshoyer.com
  6. Militana, Militana & Calcutt
    702 Bay St. N.E., Militana, Militana & Calcutt, FL 33701
    727.898.4198 ·
  7. Savett Frutkin Podell & Ryan, P.C.

    800.993.3233 · sfprpc@op.net
  8. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: M.D. Florida
DOCKET #: 96-CV-2374
JUDGE: Hon. Steven D. Merryday
DATE FILED: 04/10/1997
CLASS PERIOD START: 02/28/1996
CLASS PERIOD END: 11/14/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy & Squiteri LLP (San Francisco)
    595 Market Street, Suite 2500, Abbey Gardy & Squiteri LLP (San Francisco), CA 94105
    415.538.3725 ·
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Bonnett, Fairbourn, Friedman & Balint, PC (Phoenix)
    4041 N. Cental Avenue, Suite 1100, Bonnett, Fairbourn, Friedman & Balint, PC (Phoenix), AZ 85012-3311
    602.274.1100 ·
  4. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  5. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  6. James, Hoyer & Newcomer, P.A.
    One Urban Centre, suite 147, 4830 West Kennedy Boulevard, James, Hoyer & Newcomer, P.A., FL 33609
    813286.4100 · choyer@jameshoyer.com
  7. Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
  8. Militana, Militana & Calcutt
    702 Bay St. N.E., Militana, Militana & Calcutt, FL 33701
    727.898.4198 ·
  9. Savett Frutkin Podell & Ryan, P.C.

    800.993.3233 · sfprpc@op.net
  10. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date