According to the Company’s FORM 10-Q for the quarterly period ended June 30, 2001, the Company's Motion to Dismiss filed with the Court on February 16, 2001 was heard on May 29, 2001 at which time the Court dismissed the suit without prejudice and granted leave to the Plaintiffs to amend and re-file their complaint on or before July 20, 2001. As the Plaintiffs did not re-file a complaint, the Court has dismissed the suit with prejudice, resulting in a complete resolution in favor of the Company.
As summarized by the same SEC filing, on June 20, 2000, the Company and its former chief executive officer, former chief financial officer andchief operating officer were named as defendants in litigation brought by Ronald M. Dickerman, in his individual capacity, in the United States District Court for the Southern District of New York, alleging that the Company and the named executive officers violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Mr. Dickerman subsequently amended the complaint to assert his claims on behalf of an unnamed class of plaintiffs. On July 28, 2000, Benjamin LeBorys commenced a class action lawsuit making similar allegations against the Company and certain of its officers and directors in the United States District Court for the Southern District of New York. The cases were consolidated, and Mr. LeBorys was named lead plaintiff.
The original Complaint charges Omega and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, for, among other things, making false and misleading public statements concerning its financial condition during the Class Period. During the Class Period, Omega issued a series of false and misleading statements regarding the profitability of its investments in healthcare facilities.