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Case Status:    SETTLED
On or around 09/18/2000 (Settlement hearing date)

Filing Date: December 29, 1998

According to the latest docket posted, on September 20, 2000, the Court entered the Order by U.S. District Judge Marilyn H. Patel granting plaintiffs' motion of approval of plan of allocation of settlement proceeds and plaintiffs' motion for attorney fees and reimbursement of expenses. The court awarded Representative Plaintiffs' Counsel attorneys' fees in the amount of thirty percent (30%) of the settlement fund plus litigation expenses incurred in an aggregate amount of $324,194.57 together with the interest earned. Finally, the Court granted the plaintiff's motion of final approval of class action settlement. The case is closed.

As reported by the Company’s FORM 10-Q For The Quarterly Period Ended July 2, 2000, in January 2000, the Company reached an agreement with the plaintiffs to
settle the class action law-suit. The parties to the class action submitted a
Stipulation of Settlement to the court for preliminary approval. On July 17,
2000, the Court preliminarily approved the settlement, certified the class for
settlement purposes, and approved the notice of the settlement to be sent to
class members. Notice has been sent to the settlement class. Pursuant to the
class action settlement, the plaintiff class will receive $20 million in full
settlement of their claims. In January, 2000, the Company also reached an
agreement-in-principle to settle the derivative action; it is expected that the
derivative settlement will be finalized in the near future and presented for
court approval. Settlement of both of these actions is contingent upon the
satisfaction of numerous conditions, including among others, final court
approval.

Commencing in December 1998, a total of eleven class action lawsuits were
filed in federal court by or on behalf of stockholders who purchased Company
stock between January 10, 1996 and December 28, 1998. These actions named as
defendants the Company and certain of its present and former officers and
directors. The complaints alleged various violations of the federal securities
laws in connection with the restatement of the Company's financial statements
and sought unspecified but potentially significant damages. In April 1999, these
actions were ordered consolidated and, in July 1999, the plaintiffs filed a
consolidated amended complaint. A stockholder derivative action, purportedly on
behalf of the Company and naming as defendants Company officers and directors
was also filed in state court seeking recovery for the Company based on stock
sales by these defendants during the above time period.

The original complaint charged ADAC and defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing regarding the Company's 1996, 1997 and 1998 financial results, which were materially false and misleading because defendants knew that the strong growth and positive results reported for those periods were due to the defendants' improper recognition of revenue in violation of generally accepted accounting principles (FASB Statement of Concepts No. 5, para. 83) and ADAC's stated revenue recognition policy.

The complaint further alleged that on December 29, 1998, the Company announced that its financial results for fiscal years 1996, 1997 and 1998 will be restated. According to the Company, 'As part of this restatement, the Company will adjust the timing of certain revenues over the 1996-1998 period.' In addition, the Company announced that, 'the Company believes that the net effect of these adjustments will have a material adverse impact on the Company's fiscal 1996 and 1997 financial results but are not expected to have a material impact on its previously released fiscal 1998 revenue, although the effect on revenue in individual quarters may be material.'

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: ADAC
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. California
DOCKET #: 98-CV-04934
JUDGE: Hon. Marilyn Hall Patel
DATE FILED: 12/29/1998
CLASS PERIOD START: 01/10/1996
CLASS PERIOD END: 12/28/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  2. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  4. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  5. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 98-CV-04934
JUDGE: Hon. Marilyn Hall Patel
DATE FILED: 07/20/1999
CLASS PERIOD START: 01/10/1996
CLASS PERIOD END: 12/28/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  2. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date