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Case Status:    SETTLED
On or around 04/12/2012 (Date of order of distribution of settlement)

Filing Date: March 26, 2010

According to a press release dated March 26, 2010, the Complaint alleges that the Registration Statement was materially false and misleading and/or omitted facts necessary to make the statements made not misleading, including the following: (1) that the Company's accounts receivable included at least $1.5 million in aging receivables that should have been reserved for; and (2) that the Company's Home Health revenues were falling short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care.

On March 18, 2010, after the market closed, the Company reported its financial results for the 2009 fiscal fourth quarter and year ending December 31, 2009, and reported a net loss of $3.7 million, or a loss of $0.48 per share for the fourth quarter. The Company indicated that Addus had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter the Company's Home Health revenues were short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care.

The following day, shares of the Company's stock declined $2.60 per share, or approximately 29%, to close at $6.30 per share on March 19, 2010. This closing price represented a cumulative loss of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share, just months earlier.

On June 01, 2010, the Court granted the Plaintiff's motion to be appointed as lead plaintiff and the Plaintiff's selection of lead counsel.

On August 10, 2010, an Amended Complaint was filed by the Lead Plaintiff against the defendants. The defendants responded by filing a motion to dismiss on September 20, 2010.

As summarized by the Company's FORM 10-K for the fiscal year ended December 31, 2010, as previously reported, on March 21, 2011, we and the other named defendants entered into a stipulation of settlement with the plaintiffs with respect to the class action, pursuant to which we are to cause $3,000,000 to be paid into a settlement fund. The monetary amount of this settlement is covered by insurance. On March 22, 2011, the United States District Court for the Northern District of Illinois preliminarily approved the settlement and scheduled a July 21, 2011 hearing to consider, among other things, whether to finally approve the settlement of the class action. If the settlement is given final approval by the court, the class action will be dismissed with prejudice.

According to the Final Judgment and Order signed by the Honorable Virginia M. Kendall on July 21, 2011, the motions for settlement and for attorney fees and reimbursement of expenses are granted. The action is now dismissed with prejudice.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ADUS
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. Illinois
DOCKET #: 10-CV-01937
JUDGE: Hon. Virginia M. Kendall
DATE FILED: 03/26/2010
CLASS PERIOD START: 10/27/2009
CLASS PERIOD END: 03/26/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
  3. Pomerantz Haudek Block Grossman & Gross LLP (former Chicago)
    1 North LaSalle Street, Suite 2225, Pomerantz Haudek Block Grossman & Gross LLP (former Chicago), IL 60602
    312.377.1181 312.377.1184 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 10-CV-01937
JUDGE: Hon. Virginia M. Kendall
DATE FILED: 08/10/2010
CLASS PERIOD START: 10/27/2009
CLASS PERIOD END: 03/18/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
No Document Title Filing Date