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Case Status:    SETTLED
On or around 06/09/2004 (Date of order of final judgment)

Filing Date: July 13, 2001

According to a press release dated June 19, 2004, U.S. District Judge John Moore II of Jacksonville approved the company's $6.75 million settlement, resolving nine consolidated securities-fraud suits. PSS World Medical officials said earlier that insurance would cover about $6.5 million of the settlement.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 26, 1999 and September 1, 2000, thereby artificially inflating the price of PSSI securities. Throughout the class period, defendants issued multiple press releases and filed quarterly reports and an annual report with the Securities and Exchange Commission which materially overstated the Company's net income in violation of Generally Accepted Accounting Principles. On June 22, 2000, Defendants issued a press release announcing its year end results and the fact that it had entered into a definitive stock-for-stock merger agreement with Fisher Scientific International, Inc. (``Fisher''). The market reacted favorably to this announcement because of the value of the exchange ratio of Fisher's shares. One of the key terms of the merger, which was belatedly disclosed by the Company, was that the Company had to report EBITDA of not less than $23 million for the quarter in order for the merger to be consummated. In an August 8, 2000 press release, defendants announced that they were in compliance with this provision of the merger agreement and that the merger was expected to proceed. On September 1, 2000, the Company issued a press release reporting that the merger agreement had been terminated. In response to this announcement, the market reevaluated the true value of PSSI's shares, which had been buoyed by the potential exchange value of Fisher's stock during the Class Period, and, accordingly, shares of PSSI's stock, which had closed at $6 3/8 prior to announcement of the merger termination, closed at $4 13/16 on an inordinate volume of 5,730,200 shares upon dissemination of the news. As the sell-off continued, the price of the Company's stock settled into the range of approximately $2 3/4 - $3 3/4. While Fisher had abandoned the merger because of the results of its own due diligence review of the Company's books and records, the public only became aware of the truth on June 27, 2001. On that date, PSSI filed its Form 10-K for the fiscal year ended March 31, 2001 with the SEC and disclosed, for the first time, the fact that the Company's internal controls over inventory, accounts payable, sales, and accounts receivable were, at all relevant times, materially deficient and that the Company had previously issued financial statements for the quarter ended June 30, 2000 which were materially misleading. As a result of these problems, the Company would be forced to restate its previous financial data, and would also cause the Company's EBITDA to be reduced, below the threshold that would have allowed the merger to be completed.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PSSI
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 #: 01-CV-00795
JUDGE: Hon. John H. Moore II
DATE FILED: 07/13/2001
CLASS PERIOD START: 10/26/1999
CLASS PERIOD END: 09/01/2000
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. Beatie & Osborne LLP
    599 Lexington Avenue, 42nd Floor, Beatie & Osborne LLP, NY 10022
    212.888.9000 212.888.9664 ·
  3. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  4. Berman DeValerio Pease Tabacco Burt & Pucillo (CA)
    425 California Street, Suite 2025, Berman DeValerio Pease Tabacco Burt & Pucillo (CA), CA 94104
    415.433.3200 415.433.6382 ·
  5. 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
  6. Bull & Lifshitz
    18 East 41st St., Bull & Lifshitz, NY 10017
    212.213.6222 212.213.9405 ·
  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. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: M.D. Florida
DOCKET #: 01-CV-00795
JUDGE: Hon. John H. Moore II
DATE FILED: 03/22/2002
CLASS PERIOD START: 10/26/1999
CLASS PERIOD END: 10/03/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  2. 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 ·
No Document Title Filing Date