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HEALTH NET, HN MANAGEMENT HOLDINGS,

 PUEBLO, Colo., Jan. 15 /PRNewswire/ -- Qual-Med Inc. (NASDAQ: QLMD) announced today that, in connection with its ongoing litigation against Health Net, HN Management Holdings Inc. (HNMH) and other parties in Sacramento, Calif., relating to the 1992 conversion of Health Net to a for-profit corporation, Health Net and HNMH have filed a cross complaint against Qual-Med and the directors of Qual- Med.
 The cross-complaint contains allegations of a derivative nature purportedly brought in Health Net's capacity as a stockholder of Qual-Med for breach of fiduciary duty and waste of corporate assets by Qual-Med and the individual directors in connection with Qual- Med's prosecution of its legal action against Health Net. The cross complaint also alleges in a purported class action that certain public statements by Qual-Med were materially false and misleading in violation of the individual directors' fiduciary duties. In addition, the cross complaint also contains allegations, in the form of a purported class action, that Qual-Med and various of the cross claim defendants have tortiously interfered with contractual relationships and prospective economic advantages held by Health Net and HNMH and have engaged in unfair competition in violation of California law.
 With respect to the purported derivative action, Qual-Med's board of directors plants to review the matter at its next regularly scheduled meeting. With respect to the other matters alleged in the cross complaint, Qual-Med believes that the claims are without merit, are being raised by Health Net to deflect the real issues in the current litigation between Qual-Med and Health Net, and plans to vigorously defend against them.
 As previously announced, the presiding judge of the Sacramento County Superior Court has, for trial purposes, severed the mandate action in which Qual-Med is seeking the revocation of the sale of Health Net to HNMH from Qual-Med's other claims to permit the claims to be tried in separate actions. The court had ordered a trial date of Feb. 16, 1993, but the trial date has been postponed to March 30, 1993, in order to permit the parties to engage in additional discovery.
 Separately, Qual-Med announced that its pending breach of contract action against the Wellness Foundation relating to the purchase by Qual-Med of the Wellness Foundation's interest in Health Net and its claim against Health Net and HNMH for breach of a confidentiality agreement has been transferred from the Los Angeles Superior Court to the Sacramento Superior Court.
 -0- 1/15/93
 /CONTACT: Gerald L. Davis, VP-marketing of Qual-Med, 719-542-0500/
 (QLMD)


CO: Qual-Med Inc.; Health Net; HN Management Holdings ST: Colorado, California IN: HEA SU:

MS-JB -- DV008 -- 5616 01/15/93 20:00 EST
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Publication:PR Newswire
Date:Jan 15, 1993
Words:432
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