Class Action Settlment for $1.5 Million by Dynacq Healthcare, Inc.
Dynacq Healthcare, Inc. has agreed to settle a $1.5 million shareholder class action lawsuit, which alleged that the defendants violated federal securities laws by publishing materially misleading financial statements that did not comply with generally accepted accounting principles, making materially false or misleading statements or omissions regarding revenues and receivables, operations and financial results, and engaging in an intentional fraudulent scheme aimed at inflating the value of Dynacq’s stock.
The amount of the settlement will include payment of all administrative costs and class attorneys’ fees as well as the payout to the class. The $1.5 million will be paid $100,000 within 30 days of final approval of the settlement by the court and the balance in 36 equal monthly interest bearing installments beginning 30 days thereafter.
Conditions to the effectiveness of the settlement are: no more than 5% of the class (both in number of shareholders and in percentage of total shares in the class) opting out, confirmation that the lead plaintiffs are adequate class representatives for the proposed settlement class, and the execution of definitive settlement and release agreements acceptable to the Company’s Board and the Company’s primary lender.
Filed under Class Action, General Law, Settlements
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