Beginning on May 30, 2003, the first of two putative federal securities class action complaints was filed in the United States District Court for the Middle District of Florida on behalf of a class of persons who purchased the common stock of e-Medsofft.com. The cases alleged violations of Sections 10(b) and 20(a) oft he Securities Exchange Act of 1934 on behalf of a putative class of e-Medsoft shareholders who purchased shares between December 6, 2000 to and including February 11, 2002. Specifically, the complaint alleges that defendants issued false press releases and financial statements, and fraudulently obtained $70 million in financing to help pay for acquisitions, a scheme which ultimately caused the Company’s auditor to resign. The Company twice restated financial statements of Chartwell, a company it acquired. The Company’s stock was delisted from the AMEX on July 15, 2002. On November 27, 2002, the Company filed for bankruptcy.
Following publication in accordance with the Private Securities Litigation Reform Act of 1995 ("PSLRA"), Plaintiffs filed a motion on August 18, 2003 for consolidation of the Actions, for appointment as lead plaintiffs and for approval of Plaintiffs' selection of Lead Counsel. By Order dated November 13, 2003, the Actions were transferred to the Southern District of Ohio by the Judicial Panel on Multidistrict Litigation, along with four other actions related to National Century Financial Enterprise, Inc. The Actions were assigned to Hon. James L. Graham.
On January 21, 2004, Plaintiffs filed identical amended class action complaints in the Actions. On June 10, 2004, Judge Graham entered an order consolidating the two related actions, appointing Gary Davis, Laurie Davis, Glenn Schrader, Donna Schrader and Larry R. White as lead plaintiffs and approving lead plaintiffs' selection of Vianale & Vianale LLP and Kaplan Fox & Kilsheimer LLP as lead counsel and James Arnold as liaison counsel. The defendants moved to dismiss the Amended Complaints. These motions resulted in a stay of discovery under the PSLRA. Plaintiffs responded to these motions on May 24, 2004. The defendants' motions remained pending when the Parties reached a settlement of the actions. By Order entered June 14, 2007, the Court allowed discovery to proceed in the actions. On February 12, 2008, the parties reached an agreement in principle to settle the actions.
According to an article dated January 30, 2009, lawyers have asked a judge to approve a settlement in a class action accusing former executives and directors of bankrupt health care software company e-MedSoft.com of misleading investors about its alliance with collapsed National Century Financial Enterprises Inc. Plaintiffs' counsel filed an unopposed motion Thursday in the U.S. District Court for the Southern District of Ohio asking for approval of the deal, which calls for a fund of $400,000 to be established for class members. The proceeds of a “modest directors' and officers' liability insurance policy” are being used to settle the case, according to the motion. …The settlement effectively ends the case, clearing up claims against e-MedSoft officials including former Chairman and CEO John F. Andrews, former chief accounting officer Suzanne Hosch, director Cedric Johnson, former chief financial officer George Kuselias, director Albert Marston, former Chairman and CEO Frank P. Magliochetti, and director Sam J.W. Romeo. A judge had dismissed the other defendants, which included JPMorgan Chase & Co., the Beacon Group LLC and R.J. Gold & Co. PC. In settling, the defendants denied any wrongdoing. …Two securities class actions were filed in May 2003 in the U.S. District Court for the Middle District of Florida on behalf of purchasers of e-MedSoft stock. The suits were consolidated and transferred in November 2003 to the Southern District of Ohio to be part of a pending multidistrict litigation regarding the downfall of National Century.
Amedisys, Inc., filed suit against JPMorgan Chase Bank, N.A. in Ohio federal district court (the first suit), alleging various contract, fiduciary duty, and fraud claims regarding JPMorgan’s role in a dispute about receivables and funds that Amedisys claimed it owned. These assets are potentially the property of the bankruptcy estate of National Century Financial Enterprises. After National Century filed for bankruptcy (the bankruptcy case), the first suit was referred, on a motion by Amedisys, to the Ohio bankruptcy court. Amedisys separately filed a subsequent suit (the second suit) in Louisiana state court against JPMorgan and certain of JPMorgan’s executives alleging similar claims under Louisiana law; this second suit was removed, on a motion by JP Morgan, to the United States District Court for the Middle District of Louisiana. The second suit was then stayed pending proceedings in the bankruptcy case and transferred to the Ohio district court. The district court granted judgment in favor of JPMorgan on the Ohio claims raised in the first suit. This Court affirmed in part and reversed in part this judgment against Amedisys.
JPMorgan moved for summary judgment on the Louisiana claims raised in the second suit on the grounds that they were barred by res judicata due to the resolution of the first suit. The district court granted JPMorgan’s summary judgment motion in the second suit, and Amedisys appeals. The Appeals Court went on to affirm the judgment of the district court.