FPA Medical Management Inc. -- NMS: FPAM -- Defrauded Stock Purchasers, Class Action Alleges.PHILADELPHIA--(BUSINESS WIRE)--June 19, 1998--FPA Medical Management Inc. (NMS See NetWare Management System. : FPAM FPAM Financial Planning Association of Malaysia ) defrauded stock purchasers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax filed in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. in the United States District Court for the Southern District of California The United States District Court for the Southern District of California is the federal district court whose jurisdiction comprises the following counties in California: Imperial and San Diego. (Case Number 98-CV-928S (LAB)). The lawsuit seeks recovery on behalf of purchasers of FPAM common stock during the period February 27, 1997 through May 14, 1998. Plaintiffs charge that: -- FPAM underreserved drastically for claims payable, which reduced FPAM's medical services expense and materially inflated revenue and income. -- FPAM mischaracterized $55 million in payments as revenue, when in fact these payments were factored into the purchase price for certain assets that FPAM purchased in 1996, materially inflating FPAM's revenue and income. -- FPAM improperly recorded revenue, income and assets for millions of dollars of uncollectible receivables. Insiders sold millions of shares from their own portfolios at grossly inflated prices without disclosing the fraud, according to the suit. Defendants include FPAM and several of its top officers, directors and controlling persons. The fraud unravelled with FPAM's devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. disclosures on May 15, 1998. FPAM belatedly disclosed disastrous results for the March 1998 quarter, including a $9.1 million loss, and in addition a $200 million charge for the June 1998 quarter. In response to these disclosures, FPAM stock lost nearly one-half its trading value, closing on May 15 at $6, down $5.50. FPAM stock has continued to drop, closing today at $2.71875. Plaintiffs are represented by the law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
If you purchased FPAM stock during the class period of February 27, 1997 through May 14, 1998, you may, not later than July 14, 1998, move the Court to serve as lead plaintiff of the Class. If you wish to discuss this action or if you have any questions concerning this notice or your rights, please contact Berger & Montague P.C. (Todd S. Collins Esq. or Jeffrey M. Krulik Esq.) at 1622 Locust locust, in botany locust, in botany, any species of the genus Robinia, deciduous trees or shrubs of the family Leguminosae (pulse family) native to the United States and Mexico. St., Philadelphia, Pa. 19103, or The Olsen Law Firm (Kurt B. Olsen Esq.) at 2300 N St., N.W., Ste. 600, Washington D.C. 20037, or Hoffman & Edelson (Marc H. Edelson Esq.), at 45 W. Court St., Doylestown, Pa. 18901.
CONTACT: Berger & Montague P.C.
Todd S. Collins Esq.
Jeffrey M. Krulik Esq.
888/891-2289 or 215/875-3000
fax: 215/875-4673
e-mail: InvestorProtect@bm.net
our website is at home.bm.net
or
The Olsen Law Firm
Kurt B. Olsen Esq.
202/663-9331
e-mail: olsenlaw@hotmail.com
or
Hoffman & Edelson
Marc H. Edelson Esq.
215/230-8043
e-mail: Hofedlaw@aol.com
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