Dynacq Healthcare Announces Departure of Executive Officer, Attorney General Investigation.Business Editors/Health/Medical Writers HOUSTON--(BUSINESS WIRE)--Feb. 13, 2004 Dynacq Healthcare Inc. (Nasdaq NM:DYIIE) (the "Company") announced today that Sarah C. Garvin has resigned from her position as executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Company in order to pursue a career as a healthcare management consultant focusing on project development. She will continue to assist the Company on a consulting basis. Chiu M. Chan, chief executive officer of the Company, will serve as acting chief operating officer until a replacement can be secured. The Company has been notified by the Office of the Attorney General of Texas ("AG's office") that it is the subject of an investigation of possible violations of the statutes governing the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of patients. The Company believes that such investigation stems from the same allegations that have been asserted in a private lawsuit currently pending against the Company. The Company has denied the allegations in that lawsuit and continues to vigorously defend the suit. The Company has also previously received an inquiry from the AG's office requesting documentation related to any instances of deaths occurring at the Company's facilities between Jan. 1, 1999 and Jan. 29, 2004. The Company is cooperating with the Office of the Attorney General on each of these matters, but believes the complaints received by the AG's office to be without merit. Dynacq Healthcare Inc. (www.dynacq.com) is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities and outpatient surgical centers. Statements in this press release concerning the beliefs, expectations, intentions, future events, future performance and business prospects may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and and are based on a number of risks and uncertainties. If any of these risks and uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , actual results could differ materially from those indicated in the forward-looking statements. The risks and uncertainties that may cause these forward-looking statements to prove to be incorrect include, without limitation, the outcome of discussions with the Securities and Exchange Commission regarding the accounting policies applied in preparation of the Company's financial statements, the outcome of the pending hearing with regard to delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. of our securities from the Nasdaq National Market, adverse effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or regulatory actions arising in connection with pending inquiries and/or investigations, protraction protraction /pro·trac·tion/ (pro-trak´shun) 1. drawing out or lengthening. 2. extension or protrusion. 3. of our new audit firm's review and audit of the Company's financial statements, inability to obtain required permits, rights or authorizations for a proposed new hospital, inability to negotiate desired terms with proposed joint venture partners and dependence upon completion of required audits and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. regulatory determinations for availability of financing options and other transactions. |
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