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Case Status:    DISMISSED    
On or around 10/26/2001 (Date of order of final judgment)

Filing Date: February 08, 2000

According to National Home Health Care Corporation’s FORM 10-K for the fiscal year ended July 31, 2001, in February 2001, the Court dismissed the Consolidated Amended Complaint and granted plaintiffs leave to amend. The plaintiffs' Second Consolidated Amended Complaint (the "Complaint") purported to assert claims under sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934, as amended, based upon alleged acts or omissions of the defendants that allegedly resulted in misrepresentations or omissions of material information concerning the financial condition of SunStar (and its subsidiary SunStar Health Plan, Inc., a Florida HMO presently in receivership ("Plan")). The Complaint also alleged that the Company (which allegedly held 30.5% of SunStar's common stock during SunStar's fiscal year ended July 31, 1998 and reduced its holdings to approximately 25% in 1999) and the director defendants exercised control over SunStar and therefore are liable as "controlling persons" of SunStar. In October 2001, the Court granted the defendants' motion to dismiss the Complaint with prejudice.

The original Complaint charges Sunstar's senior management and certain controlling persons of Sunstar with violations of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements during the Class Period concerning the Company's publicly reported revenue, its claim paying practices, enrollment figures, and its failure to take adequate reserves to pay foreseeable healthcare claims. As a result of defendants false and misleading statements, the price of Sunstar's securities were artificially inflated during the Class Period. The market learned of Sunstar's improprieties on December 14, 1999 when the Company disclosed that the Florida Department of Insurance ("DOI") commenced an action alleging significant deficiencies in Sunstar's financial condition and its statutory capital. According to the DOI action, Sunstar's capital reserves were reportedly inadequate in an amount exceeding $9 million and the Company was allegedly engaged in other inappropriate activities, including the intentionally slow payment of claims. The market reaction to the news was disastrous. The price of Sunstar lost nearly 45% of its value.

NOTE: Sunstar Healthcare, Inc., is not a party herein because the State of Florida Department of Insurance filed a Verified Petition For Order to Show Cause, Injunction and Notice of Automatic Stay prohibiting the commencement of any action against Sunstar Health Plan Inc., a wholly owned subsidiary of Sunstar Healthcare Inc., or its affiliates.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Accident & Health)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SUNS
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 #: 00-CV-00172
JUDGE: Hon. Patricia C. Fawsett
DATE FILED: 02/08/2000
CLASS PERIOD START: 11/13/1998
CLASS PERIOD END: 12/14/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  2. 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 ·
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  4. Shepherd & Geller LLC
    117 Gayley Street, Suite 200, Shepherd & Geller LLC, PA 19063
    ·
No Document Title Filing Date
COURT: M.D. Florida
DOCKET #: 00-CV-00172
JUDGE: Hon. Patricia C. Fawsett
DATE FILED: 04/02/2001
CLASS PERIOD START: 06/15/1998
CLASS PERIOD END: 12/14/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley & Geller (Boca Raton)
    2255 Glades Road, #421A, Cauley & Geller (Boca Raton), FL 33431
    561.750.3000 ·
  2. 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 ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  4. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  5. Sirota & Sirota LLP
    110 Wall Street 21st Floor, Sirota & Sirota LLP, NY 10005
    888.759.2990 212.425.9093 · Info@SirotaLaw.com
  6. Starr & Hollman LLP

    ·
  7. 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