CHICAGO, Aug. 20, 2007 LAWFUEL – The Lawsuit Newswire — Krislov & Associates, Ltd. Announces the Notice of Pendency and Proposed Partial Settlement of Class Action Involving DVI, Inc.
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA
Case No. 2:03-CV-5336
SUMMARY OF INFORMATION IN NOTICE OF PENDENCY AND PROPOSED PARTIAL SETTLEMENT OF CLASS ACTION
TO: ALL PERSONS OR ENTITIES, OTHER THAN DEFENDANTS IN THE LITIGATION AND PLAINTIFFS NAMED IN WM HIGH YIELD FUND, ET AL. V. O’HANLON ET AL., NO. 04-CV-3423 (E.D. PA.), WHO PURCHASED OR OTHERWISE ACQUIRED THE SECURITIES OF DVI, Inc. (DVI’s COMMON STOCK AND 9 7/8% SENIOR NOTES) BETWEEN AUGUST 10, 1999 AND AUGUST 13, 2003, BOTH DATES INCLUSIVE (THE “CLASS”).
IF YOU ARE A MEMBER OF THE CLASS YOU MAY BE ENTITLED TO SHARE IN A PARTIAL SETTLEMENT.
YOU ARE HEREBY NOTIFIED that the Lead Plaintiffs in the above captioned action have entered into a Partial Settlement with three of the named Defendants in this Litigation, Nathan Shapiro, William Goldberg and John McHugh (the “Settling Defendants”). The Partial Settlement terms include releases of the Class’ claims asserted against the Settling Defendants, but not other defendants, brought pursuant to Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission.
Lead Plaintiffs have settled their claims against the Settling Defendants, who are former outside directors of DVI, for cash payment of Three Million Two Hundred Fifty Thousand dollars ($3,250,000), which is being funded from the Settling Defendants’ personal assets. The final amount distributed to Class Members will depend upon the amount of interest earned on these funds and the amount of Court-approved attorneys’ fees, costs and expenses, and Notice and Administration Costs.
The parties to this litigation do not agree on the amount of damages per Common Share and per Senior Note that would be recoverable if the Class were to prevail on each claim alleged. The parties also do not agree as to whether the Class suffered damages, the amount thereof and how to measure damages.
The Lead Plaintiffs are proposing the Partial Settlement because, upon consideration of, among other things, the record, the potential damages, the strength of the Class’ claims and the risks and cost of continued litigation, the Partial Settlement provides substantial recovery to the Class, is fair, reasonable and adequate, and is preferable to continued litigation. The Settling Defendants deny any liability or wrongdoing, but desire to resolve the claims asserted under the terms set forth herein and, in more detail, in the Partial Settlement Agreement.
A hearing will be held before the Honorable Legrome D. Davis in the United States District Court for the Eastern District of Pennsylvania on November 2, 2007 at 9:00 a.m. to determine whether the proposed Partial Settlement is fair, reasonable and adequate to the Class and should be approved; whether the proposed Plan of Allocation is fair, reasonable and adequate to the Class and should be approved; whether a proposed Final Judgment should be entered; to determine the amount of fees and expenses that should be awarded to Plaintiffs’ Lead Counsel; and to rule upon such other matters as the Court may deem appropriate.
IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE PARTIAL SETTLEMENT FUNDS. If you have not yet received a Proof of Claim form and the full printed Notice of (i) Proposed Partial Settlement of Class Action, (ii) Hearing on Proposed Partial Settlement and Petition for Attorneys’ Fees and Costs, and (iii) Right to Share in Settlement Funds, you may obtain copies of these documents by contacting the Claims Administrator at:
DVI, Inc. Securities Litigation
c/o Strategic Claims Services
Claims Administrator
600 N. Jackson Street, Suite 3
Media, PA 19063
www.strategicclaims.net
(610) 565-9202
Inquiries, other than requests for the Notice and Proof of Claim forms, may be made to Plaintiffs’ Lead Counsel:
Clinton A. Krislov
Michael R. Karnuth
Krislov & Associates, Ltd.
20 N. Wacker Drive, Suite 1350
Chicago, IL 60606
(312) 606-0500
If you are a Class member and do not submit a proper Proof of Claim, you will not share in the Partial Settlement. Once you submit a proper Proof of Claim, unless you exclude yourself from the Class on or before September 26, 2007, you will be bound by the Order and Final Judgment of the Court.
If you already submitted a valid and timely Proof of Claim form in the Partial Settlement between Lead Plaintiffs and Defendants OnCure Medical Corp., Dolphin Medical Inc. and Presgar Imaging LC, approved by the Court on November 17, 2006 (hereinafter referred to as the “November 17, 2006 Partial Settlement”), that Proof of Claim form will serve as your Proof of Claim in this Partial Settlement and you are eligible to recover in this Partial Settlement without needing to submit another Proof of Claim form.
If you did not submit a Proof of Claim in the November 17, 2006 Partial Settlement, submitting a Proof of Claim in this Partial Settlement does not entitle you to recovery in the November 17, 2006 Partial Settlement. To participate in this Partial Settlement, you must submit a valid and timely Proof of Claim form to the Claims Administrator by no later than December 14, 2007.
Any objection to any of the matters to be considered at the Partial Settlement Hearing must be filed with the Court no later than September 26, 2007, with copies to:
Attorneys for Lead Plaintiffs:
Clinton A. Krislov
Michael R. Karnuth
KRISLOV & ASSOCIATES, LTD
Civic Opera Building
20 N. Wacker Drive
Suite 1350
Chicago, IL 60606
Attorneys for the Settling Defendants:
William P Quinn, Jr.
MORGAN, LEWIS & BOCKIUS LLP
1701 Market Street
Philadelphia, PA 19103
The Claims Administrator:
STRATEGIC CLAIMS SERVICES
600 North Jackson Street
Suite 3
Media, PA 19063
Further information may be obtained by directing your inquiry in writing to the Claims Administrator at the address above.
