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Case Status:    SETTLED
On or around 06/21/2004 (Date of order of final judgment)

Filing Date: June 15, 2001

According to the docket, on June 21, 2004, the Court entered the Order and Final Judgment signed by U.S. District Judge Donovan W. Frank. The Court granted the motion for final approval of the settlement, the plan of allocation and the award of attorney fees and reimbursement of expenses.

Earlier, on May 15, 2002, Court entered the Memorandum, Opinion, and Order denying Chronimed’s motion to dismiss the amended and consolidated class action complaint. On March 15, 2004, a hearing was held and Judge Frank granted preliminary approval of the class action settlement. A Stipulation and Agreement of Settlement was also filed that day.

The original complaint charges defendants with violations of sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants issued to the investing public false and misleading financial statements and press releases concerning the Company's publicly reported earnings, net income, and liabilities. Moreover, the Company failed to disclose material information necessary to make its prior statements not misleading. On June 14, 2001, prior to the opening of the market, Chronimed shocked the investing community by announcing that the Company intends to adjust reported revenue, earnings, and accounts receivable for the fiscal year ended June 30, 2000 and the three quarters ended March 30, 2001 because Chronimed's overall revenue, earnings, and receivables have been overstated for those periods. The Company explained that problems in its StatScript retail computer accounting systems and procedures allowed certain prescriptions to be recorded as revenue more than once. The Company added that it believes the adjustments will be material to its previously reported financial statements, and therefore, prior financial statements should not be relied upon, and the Company is suspending its previous guidance on financial performance until it completes its ongoing review and produces restated financial statements. These disclosures contradicted much of the information provided by defendants to the market during the Class Period concerning its financial results and caused the NASDAQ to halt trading in Chronimed at 9:22 A.M. Eastern Time until the Company fully satisfies the NASDAQ's request for additional information. The last trading price before the NASDAQ halted trading was $9.35 per share.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Drugs)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CHMD
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: D. Minnesota
DOCKET #: 01-CV-01092
JUDGE: Hon. Donovan W. Frank
DATE FILED: 06/15/2001
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 06/13/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Beatie & Osborne LLP
    599 Lexington Avenue, 42nd Floor, Beatie & Osborne LLP, NY 10022
    212.888.9000 212.888.9664 ·
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  4. 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: D. Minnesota
DOCKET #: 01-CV-01092
JUDGE: Hon. Donovan W. Frank
DATE FILED: 11/08/2001
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 06/13/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  2. Lockridge, Grindal, Nauen P.L.L.P.
    Suite 301, 660 Pennsylvania Avenue Southeast, Lockridge, Grindal, Nauen P.L.L.P., DC 20003-4335
    202.544.9840 202.544.9850 ·
No Document Title Filing Date