$30 Million Settlement in Assisted Living Concepts, Inc. Securities Class Action Announced By Plaintiffs' Co-Lead Counsel.
PORTLAND, Ore.--(BUSINESS WIRE)--Sept. 5, 2000
The following is an announcement by the law firm of Bernstein Litowitz Berger & Grossmann LLP:
A $30 million cash settlement was announced today in the securities class action lawsuit filed against Assisted Living Concepts, Inc. [AMEX: ALF], according to plaintiffs' co-lead counsel, the law firms of Stoll Stoll Berne Lokting & Shlachter P.C., Bernstein Litowitz Berger & Grossmann LLP, and Schiffrin & Barroway, LLP. The lawsuit arose from the restatement of ALC's financial statements for the years ended December 31, 1996, December 31, 1997 and the first three quarters of 1998. The settlement is one of the largest securities settlements ever in Oregon
The settling defendants have agreed to pay a total of $30 million, with ALC contributing approximately $10 million, the Company's liability insurance carriers contributing approximately $19 million, and certain other defendants contributing the remainder. The Class consists of persons and entities, other than defendants and their affiliates, that purchased ALC common stock during the period February 6, 1997 through March 31, 1999, inclusive (the "Class Period"), ALC's 6% convertible subordinated debentures from October 21, 1997 through March 31, 1999, and/or ALC's 5 5/8% convertible subordinated debentures from July 22, 1998 through March 31, 1999. The settlement, which was approved by the Court-appointed Lead Plaintiffs including the Miami Police Relief and Pension Fund and several individual stock and bond holders, is subject to the execution of a definitive settlement agreement, notice to the aforementioned security holders, and Court approval.
The settlement successfully resolves all claims of the Class against all defendants in the case, except for KPMG Peat Marwick LLP, which served as ALC's auditor during the Class Period. Plaintiffs' claims against KPMG have been sustained by the District Court, and plaintiffs are continuing to prosecute those claims.
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|Date:||Sep 5, 2000|
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