Case Page

 

Case Status:    SETTLED
On or around 02/05/2004 (Date of order of final judgment)

Filing Date: April 17, 2001

As reported by the Company’s FORM 10-K for the fiscal year ended December 31, 2003, on July 1, 2002, the defendants filed an answer to the complaint, denying all liability. Plaintiffs filed a motion for class certification on August 15, 2002. On November 5, 2003, the parties entered into a stipulation and agreement of settlement for $2.3 million. The court granted final approval of the settlement on February 5, 2004, which amount was later paid entirely by the Company’s directors’ and officers’ liability insurance carrier.

According to a Press Release dated December 10, 2003, on February 5, 2004 a hearing will be held to determine whether an order should be entered (i) finally approving the proposed settlement of the claims asserted by plaintiffs in this consolidated action, against defendants Penn Treaty American Corporation and defendants Irving Levit and Cameron B. Waite for the sum of $2.3 million in cash and on the terms set forth in the Stipulation and Agreement of Settlement dated as of November 5, 2003 (the "Settlement"); (ii) dismissing the Action with prejudice as to the Defendants; (iii) approving the Plan of Allocation of the Net Settlement Fund; and (iv) awarding counsel fees and reimbursement of expenses to counsel for Plaintiffs and the Class.

The Complaint charges Penn Treaty and its senior officers with violations of sections 10 and 20(a) of the Securities and Exchange Act of 1934 for materially false and misleading statements and filings with the SEC. The complaint charges Penn Treaty, which underwrites, markets and sells individual accident and health insurance products through its subsidiaries, with defrauding investors by issuing false and misleading statements about the company's financial health. According to the lawsuit, the defendants reported during the class period that Penn Treaty was experiencing tremendous growth in sales. Furthermore, they repeatedly stated that the growth was not affecting the company's fiscal health, and that it had adequate reserves for the increased level of business. The Complaint alleges that Penn Treaty did not disclose that it continued selling policies during its fourth quarter of 2000 although its reserves were well under the amount required by regulators, causing it to face possible liquidation. When the Company announced on March 30, 2001 that its ability to remain solvent was at risk, the price of Penn Treaty stock dropped 42% in one day. Further revelations about the company's inadequate reserves and financial problems allegedly drove down the stock price to nearly $3 a share by April 2, 2001.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: PTA
Company Market: New York SE
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: E.D. Pennsylvania
DOCKET #: 01-CV-1896
JUDGE: Hon. Ronald L. Buckwalter
DATE FILED: 04/17/2001
CLASS PERIOD START: 11/07/2000
CLASS PERIOD END: 03/29/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, 42 Street)
    60 East 42 Street, Abraham, Fruchter & Twersky (New York, 42 Street), NY 10021
    212.687.6655 ·
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. 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
  4. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  5. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. 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
  8. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
No Document Title Filing Date
COURT: E.D. Pennsylvania
DOCKET #: 01-CV-1896
JUDGE: Hon. Ronald L. Buckwalter
DATE FILED: 10/05/2001
CLASS PERIOD START: 07/23/2000
CLASS PERIOD END: 03/29/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date