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Case Status:    SETTLED
On or around 12/02/2005 (Date of order of final judgment)

Filing Date: September 16, 2003

By the Order and Final Judgment entered on December 2, 2005, and signed by U.S. District Judge Clarence Cooper, the settlement is approved as fair, reasonable and adequate. The action is dismissed with prejudice. Further, the Plan of Allocation is approved and Plaintiffs’ Counsel is awarded 33% of the Settlement Fund in fees, and $87,879.74 in reimbursement of expenses.

As summarized by the latest court docket, on April 5, 2004, the Court entered the Order appointing lead plaintiff and co-lead counsel. On June 3, 2004, Plaintiffs filed a Consolidated Amended Complaint, and on August 20, 2004, Defendants responded by filing a motion to dismiss the complaint. Plaintiffs filed their opposition to Defendants' motion on October 21, 2004. Pursuant to the Stipulation of Settlement dated September 9, 2005, the parties agreed to settle the litigation for $2,285,000 on behalf of those who purchased HealthTronics common stock between January 4, 2000 and July 28, 2003. A settlement hearing will be held on December 1, 2005.

The original complaint charges 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 materially false and misleading statements to the market,
and by failing to disclose material information that plaintiffs contend
defendants had a duty to disclose, between January 4, 2000 and July 25, 2003.
More specifically, the complaint alleges that defendants made material
misrepresentations and/or omitted to make material disclosures during the Class
Period concerning the efficacy, testing and market acceptance of OssaTron(R),
its leading product for the treatment of heel pain. Among other things, the
complaint charges, defendants failed to disclose that some of the Company's own
tests failed to support defendants' statements that OssaTron(R) was more
effective, safer and less costly than alternative, non-surgical treatments for
heel pain. In addition, the complaint alleges that defendants misrepresented
the market acceptance of OssaTron(R) because Defendants knew, or were severely
reckless in disregarding at the time these statements were made, that serious
questions existed among the medical community concerning the effectiveness of
extracorporeal shock wave treatment (ESWT) for heel pain, which in turn raised
serious issues as to whether insurance carriers and other third party payors
would cover OssaTron(R) procedures. As a result, and because the Company was
experiencing difficulty in its billing and collection department, which further
made insurance reimbursement difficult to obtain, the complaint claims, the
company's January 28, 2003 earnings projections lacked any reasonable basis in
fact when made.

The complaint further alleges that when defendants finally acknowledged that the OssaTron(R) product was not being absorbed by the market as they had previously claimed, the market's reaction to the disclosures was swift and severe. On July 28, 2003, the market price of HealthTronics common stock tumbled over 26% in unusually heavy trading. Indeed, the price of HealthTronics common stock dropped from a high of $17.60 per share during the Class Period to as low as $7.76 per share on July 28, 2003.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: HTRN
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: N.D. Georgia
DOCKET #: 03-CV-2800
JUDGE: Hon. Clarence Cooper
DATE FILED: 09/16/2003
CLASS PERIOD START: 01/04/2000
CLASS PERIOD END: 07/25/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  3. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  4. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  5. Holzer Holzer & Cannon, LLP
    1117 Perimeter Center West, Suite E-107 , Holzer Holzer & Cannon, LLP , GA 30338
    888.508.6832 · holzerlaw@aol.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 (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
  8. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  9. Shepherd, Finkelman, Miller & Shah, LLC
    35 East State Street, Shepherd, Finkelman, Miller & Shah, LLC, PA 19063
    877.891.9880 · jshah@classactioncounsel.com
  10. 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
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COURT: N.D. Georgia
DOCKET #: 03-CV-2800
JUDGE: Hon. Clarence Cooper
DATE FILED: 06/03/2004
CLASS PERIOD START: 01/04/2000
CLASS PERIOD END: 07/28/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  2. Chitwood Harley Harnes LLP (Atlanta)
    2300 Promenade II; 1230 Peachtree Street, N.E., Chitwood Harley Harnes LLP (Atlanta), GA 30309
    888.873.3999 404.876.4476 · info@chitwoodlaw.com
  3. Milberg Weiss Bershad & Schulman LLP (Boca Raton)
    5355 Town Center Road, Suite 900, Milberg Weiss Bershad & Schulman LLP (Boca Raton), FL 33486
    561.361.5000 561.367.8400 · info@milbergweiss.com
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