Investors, E-MedSoft Settle Securities Class Action

Investors, E-MedSoft Settle Securities Class Action - 1/30/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Investors, E-MedSoft Settle Securities Class Action
Shannon Henson

Securities Law 360. January 30, 2009
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EXCERPT: 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 putative class includes all e-MedSoft shareholders who bought stock between Dec. 6, 2000, and Feb. 11, 2002. Kenneth Vianale of Vianale & Vianale LLP, co-lead counsel for the plaintiffs, said the deal is a good one. “Given the ability to collect on any judgment in this case, we believe this is a fair and reasonable settlement for the shareholders,” he said. The class is likely to include a few hundred people, Vianale said. Plaintiffs' counsel has not asked for fees yet, but Vianale said such requests are typically up to 30 percent of the settlement amount. 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.

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