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Case Status:    SETTLED
On or around 03/21/2007 (Date of order of final judgment)

Filing Date: March 01, 2005

By the Order and Final Judgment entered on March 21, 2007, and signed by U.S. District Judge Richard A. Schell, the settlement is approved as fair, reasonable and adequate, and the Class Members and the parties are directed to consummate the Settlement in accordance with the terms and provisions of the Stipulation. The Complaint is dismissed with prejudice.

On February 1, 2007, the Court issued a Report and Recommendations that the motion settlement is approved and that both the proposed plan of allocation and attorneys’ fees and expenses should be granted. On February 21, 2007, the Court entered the Order adopting the Report and Recommendations. Plaintiffs’ counsel was awarded $1,000,000.00 in attorneys' fees and $73,384.00 in expenses.

On October 9, 2006, a Stipulation and Agreement of Settlement – Corrected was filed. According to the Stipulation, the proposed settlement is in the amount of $3 million. The Settlement Fairness Hearing has been set for January 19, 2007.

On May 17, 2005, the Court entered the Order granting the motion to consolidate the cases into 4:05cv78. On June 3, 2006, the Court entered the Order appointing the ANSI Institutional Group as Lead Plaintiff and appointing Milberg Weiss Bershad & Schulman LLP and Entwistle & Cappucci LLP as Co-Lead Counsel, and the law firm of Claxton & Hill PLLC as Liaision Counsel. On September 28, 2005, the plaintiffs filed a Consolidated Amended Class Action Complaint, and on January 13, 2006, the defendants filed a motion to dismiss the Consolidated Amended Class Action Complaint. Before any ruling on the motion to dismiss, on August 24, 2006, a Joint Notice of Settlement was filed.

The original complaint alleges that defendants' Class Period statements about the Company's strong performance, made in quarterly press releases and SEC filings, were materially false and misleading because: (a) as part of its marketing strategy, the Company improperly paid certain physicians $1,000 for each device implanted in patients; (b) the Company's strong growth was driven, in material part, by improperly paying off physicians to recommend and implant ANSI products in patients; (c) the Company's growth was dependent on an improper and unethical practices that were inherently unsustainable, presenting a material and undisclosed risk to ANSI's business and stock price; and (d) the Company's much-touted relationship with its physician customers was, in fact, based on payments to physicians for recommending the Company's products and did not, as defendants represented, reflect growing acceptance of its products based on their benefits.

The complaint further states defendants engaged in the alleged wrongdoing so that they could profit by selling their personally held ANSI shares at artificially inflated prices. During the Class Period, ANSI insiders, including certain of ANSI’s officers, sold a total of 700,759 shares of ANSI stock for gross proceeds of $28,617,666.

On or around February 17, 2004, before the open of trading, defendants revealed that the Company had received a subpoena from the Inspector General, Department of Health and Human Services, "requesting documents relating to the Company's sales and marketing, reimbursement, Medicare and Medicaid billing, and certain other business practices." In addition, defendants announced that revenues in the first quarter of 2005 could be below previous expectations, based on early indications. In reaction to this announcement, the price of ANSI common stock plummeted, falling from $37.60 per share on February 16, 2005 to $29.37 per share on February 17, 2005, a one-day drop of 22% on unusually heavy trading volume of more than 7.9 million shares.


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


Ticker Symbol: ANSI
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: E.D. Texas
DOCKET #: 05-CV-00078
JUDGE: Hon. Don D. Bush
DATE FILED: 03/01/2005
CLASS PERIOD END: 02/16/2005
  1. Baron & Budd, P.C. (Dallas)
  2. Brodsky & Smith, LLC (former Pennysylvania)
  3. Dyer & Shuman, LLP
  4. Federman & Sherwood (Oklahoma City)
  5. Law Offices of Charles J. Piven, P.A.
  6. Milberg Weiss Bershad & Schulman LLP (New York)
  7. Paskowitz & Associates
  8. Schatz & Nobel, P.C.
No Document Title Filing Date
COURT: E.D. Texas
DOCKET #: 05-CV-00078
JUDGE: Hon. Don D. Bush
DATE FILED: 09/28/2005
CLASS PERIOD END: 02/16/2005
  1. Baron & Budd, P.C.
    312 Oak Lawn Avenue, Suite 1100, Baron & Budd, P.C., TX 75219
    1800-946-9646 ·
  2. Claxton & Hill
    3131 McKinney Ave., Suite 700 LB 103, Claxton & Hill, TX 75204-2471
    214.969.9099 ·
  3. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 ·
  4. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 ·
  5. Law Offices of Peter G. Angelos, PC
    One Charles Center, 100 N. Charles St., Law Offices of Peter G. Angelos, PC, MA 21201-3804
    800.556.5522 410.649.2110 ·
  6. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 ·
  7. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 ·
  8. Provost & Umphrey Law Firm, LLP (Dallas )
    3232 McKinney Avenue, Suite 700, Provost & Umphrey Law Firm, LLP (Dallas ), TX 75204
    214.744.3000 214.744.3015 ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 ·
No Document Title Filing Date
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