According to the docket dated June 30, 2005, on November 26, 2003, the court entered its Order and Final Judgment in that plaintiffs' counsel are awarded 30% of the Gross Settlement Fund in attorneys' fees and $1,109,890.30 in reimbursement of expenses effectively terminating the case.
By the Notice of Proposed Settlement of Class Action, a Settlement Fund consisting of $10.2 million in cash, plus accruing interest, has been established. A hearing will be held before the Honorable Adalberto Jordan in the United States Courthouse, 301 N. Miami Avenue, Miami, FL 33128, at 10:00 a.m., on November 17, 2003 (the “Settlement Fairness Hearing”) to determine whether a proposed Settlement (the “Settlement”) of the above-captioned actions as set forth in the Stipulation and Agreement of Settlement dated August 25, 2003 (the “Stipulation”), is fair, reasonable and adequate and to consider the proposed Plan of Allocation for the Settlement proceeds and the application of Plaintiffs’ Counsel for attorneys’ fees and reimbursement of expenses.
As summarized in the same Notice, the initial complaints in this action were filed on November 19, 1997. On June 1, 1998, Plaintiffs filed a Consolidated and Amended Class Action Complaint (the “Complaint”). The Class alleges that Defendants violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and that the Individual Defendants violated Section 20(a) of the Securities Exchange Act of 1934 by knowingly or recklessly making materially false and misleading statements regarding PCA’s business operations, deficits and liabilities. The Complaint also alleges that the price of PCA’s common stock was artificially inflated throughout the Class Period as a result of these false and misleading statements. On August 7, 1998, Defendants moved to dismiss this Complaint. Defendants’ motion to dismiss the Complaint was denied on February 17, 1999. After the conclusion of discovery, Defendants filed a motion for summary judgment, which was denied by the Court on July 24, 2002.
The original complaint alleges that Physician Corporation of America and certain of its present or former directors and officers violated federal securities laws and the common law by misrepresenting and/or omitting material information concerning the company's financial condition.