Stull, Stull & Brody Announces Class Action Against Phycor, Inc.
The following was announced today by Stull, Stull & Brody:
Notice is hereby given that a class action lawsuit was filed on June 24, 1999, against Phycor, Inc. (NASDAQ:PHYC) ("Phycor " or the "Company") in the United States District Court for the Middle District of Tennessee on behalf all persons who purchased Phycor's 4-1/2% Convertible Subordinated Debentures Due 2003 between April 22, 1997, and September 22, 1998 (the "Class Period").
The complaint alleges that certain officers and directors of the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting and/or omitting material information concerning Phycor's operations and business prospects. Specifically, the Complaint alleges that defendants falsified its reported profits and failed to disclose the failure of the Company's business model, thereby artificially inflating the price of the Company's securities, while pocketing over $17 million in insider trading profits.
On September 23, 1998, the Company revealed the shocking disclosure that it would be writing off yet another $92 million to reflect the impaired assets of its physician groups. The Company's debentures dropped from $109 per Debenture in June 1997 to $60 per Debenture on disclosure of the further writeoff. Total writeoffs over five quarters totaled $307 million and completely eliminated every dollar of income reported by Phycor during the Class Period.
Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull and Brody has litigated many class actions for violations of securities laws in federal courts over the past 25 years and has obtained court approval of substantial settlements on numerous occasions.
If you are a member of the class described above, you may, not later than August 24th, 1999, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull and Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull and Brody, 6 East 45th Street, New York, NY 10017.
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|Date:||Jul 5, 1999|
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