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HEALTHCARE COMPARE CORP. SUED IN CONNECTION WITH RECENT DROP IN STOCK PRICE

 DOWNERS GROVE, Ill., April 6 /PRNewswire/ -- Ronald H. Galowich, executive vice president and general counsel of HealthCare COMPARE Corp. (NASDAQ: HCCC), announced today that three lawsuits have been filed in the U.S. District Court of the Northern District of Illinois alleging violations of the federal securities laws by the company and two of its executive officers. The actions were brought against the company, James C. Smith, the company's president and chief executive officer, and Joseph E. Whitters, the company's chief financial officer, purportedly on behalf of all persons who purchased HCCC common stock between December 1992 and March 30, 1993. On March 31, 1993, the price of the common stock fell $5.63 following an announcement by the company that 1993 revenues and earnings were expected to be less than previously anticipated. The plaintiffs allege, among other things, that the defendants made false and misleading statements regarding the company's financial prospects for 1993, which they further allege results in the price of the company's common stock being inflated during the period in question. The plaintiffs seek compensatory damages, pre- and post- judgment interest and the costs and, disbursements of the lawsuits, including reasonable attorneys' and experts' fees.
 Galowich stated that the company believes the plaintiff's claims are without merit, that the defendants have substantial defenses to these actions and that they intend to vigorously defend these suits.
 HealthCare COMPARE Corp. is America's leading independent provider of medical cost management services and offers the most comprehensive managed care programs available. COMPARE provides utilization management (COMPARE Medical Review Programs), computer assisted bill review and pricing services (OUCH Systems) and negotiation of fixed price contracts with medical providers to develop and maintain preferred provider networks (The AFFORDABLE Medical Networks) for the exclusive use of our clients. We achieve significant medical cost savings for both group health and workers' compensation clients...without compromising the quality of care or freedom of choice.
 -0- 4/6/93
 /CONTACT: Ronald H. Galowich, executive vice president and general counsel of HealthCare COMPARE Corp., 312-245-1313/
 (HCCC)


CO: HealthCare COMPARE ST: Illinois IN: HEA SU:

TM -- NY069 -- 3611 04/06/93 19:39 EDT
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Publication:PR Newswire
Date:Apr 6, 1993
Words:355
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