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| 2002 News and Press Releases |
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HEADLINE ARCHIVED:
Trial Date Set In Oxford Health Plans, Inc. 1997 Securities Class Action Litigation
By: Staff Writer
PR Newswire (US). December 20, 2002
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EXCERPT: Oxford Health Plans, Inc. announced today that the United States District Court for the Southern District of New York has scheduled trial to commence on March 10, 2003 in the securities class action lawsuits brought in 1997 following the October 27, 1997 decline in the price of the Company's common stock. In anticipation of additional legal fees and other expenses related to trial, the Company expects to add $ 20 million to its litigation reserves for these lawsuits, which will result in a $20 million non-cash pretax charge against income for the quarter ending December 31, 2002. As previously reported, in view of the inherent risks and uncertainties of litigation and in anticipation of a settlement conference held in November 2002, the Company communicated to the plaintiffs and the Company's excess insurance carriers its willingness to pay $ 161.3 million. This offer reflected the full amount of the current retention under the excess insurance carriers' interpretation of the $ 200 million Excess Insurance policies that the Company purchased in 1999. Although settlement discussions may continue, the Company, its excess insurance carriers and the plaintiffs have been unable to reach a settlement of these lawsuits. If a settlement is not reached, or if the Court does not approve any such settlement, the securities class actions would proceed to trial. The Company, in the opinion of management with the advice of external counsel, has substantial defenses to plaintiffs' claims and may ultimately prevail at trial. There can be no assurance as to the ultimate result in this litigation.
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