IN RE EQUIMED INC SECURITIES LITIGATION


\|

Keywords & Phrases

CaseNo: ECAL161420, CourtName: MISC 2, State: PA Pennsylvania, UniqueCaseRef: LCD>ECAL161420, Colkitt, Securities, Derdel, Electroscope, Common Stock, Prospectus, Registration Statement, Exchange, Pursuant, Caravan, Ernst, Financials, Offering, Class Period, Misleading, Class Action, Directors, Defendant Colkitt, Material Facts, Beckett, Materially False, Medicare, Shares, Pearson, Transactions, Internal Controls, Oncology, Exchange Act, False Claims, United States, Equimed Common Stock, Minority Shareholder Litigation, Dissemination, Pennsylvania, Odell, Kinnard, Filing , ContentID: 120252688

Case Documents

COMPLAINT
[ see first page and extracted highlights below ] ItemID: 127756

16 pages
HTML

2002-05-30

REVISED CONSOLIDATED AMENDED COMPLAINT
[ see first page and extracted highlights below ] ItemID: 127760

41 pages
PDF

1998-12-13

DOCKET B
[ see first page and extracted highlights below ] ItemID: 127759

3 pages
HTML

1998-12-13

DOCKET B 2
[ see first page and extracted highlights below ] ItemID: 127758

3 pages
HTML

1998-10-20

DOCKET A
[ see first page and extracted highlights below ] ItemID: 127757

35 pages
HTML

Total Documents: 5 documents , 98 pages

Price: $ 39.95

IVESLCD01 KGI0001

1 . COMPLAINT

EXTRACTED KEY WORDS

COMMON STOCK
PROSPECTUS
PLAINTIFF
SECURITIES
REGISTRATION STATEMENT
OFFERING
PURSUANT
CLASS ACTION
DEFENDANTS
SHARES
ODELL
KINNARD
NET REVENUES
MEMBERS
SECURITIES ACT
UNITED STATES
FEDERAL SECURITIES
DISTRIBUTION AGREEMENT
MISLEADING
TIMES RELEVANT HERETO
ELECTROSURGICAL INSTRUMENTS
STOCK-IN ORDER
MATERIALLY FALSE
STATES DISTRICT COURT
AVROM GART
RANDLE VOYLES
ISSUED PURSUANT
CLASS PERIOD
MATERIAL FACTS



                        UNITED STATES DISTRICT COURT
                           DISTRICT OF MINNESOTA


   -------------------------------------------------------

   AVROM GART, Individually and On Behalf
   of All Others Similarly Situated,

                         Plaintiff,

              - against -

   ELECTROSCOPE, INC., ROBERT C.
   ODELL, DAVID W. NEWTON, VERN D.
   KORNELSEN, ROBERT D. TUCKER,
   JOE W. TIPPETT, DONALD R.
   TEMPLE, C. RANDLE VOYLES, and
   JOHN G. KINNARD AND COMPANY,
   INC.,

                         Defendants.

   -------------------------------------------------------

   X
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   X

SNIPPETS:

UNITED STATES DISTRICT COURT

AVROM GART, Individually and On Behalf of All Others Similarly Situated,

Plaintiff Demands a

Plaintiff, by his attorneys, for his Class Action complaint, alleges:

This is a securities class action on behalf of purchasers of the common stock of

That Offering was for 1,200,000 shares of common stock at $10.50 per share.

In its 1996 fiscal year ended March 31, 1996, less than three months before the Company's

The Prospectus was full of optimism about continued growth, especially for fiscal 1997,

On February 7, 1997, Electroscope filed its 1997 third fiscal quarter Form 10-Q with the SEC,

This Court has jurisdiction over the subject matter of this action pursuant to section 22 of

The wrongs alleged in this Complaint occurred, in substantial part, in this District,

In connection with the acts, conduct, and other wrongs complained of herein, defendants,

Defendant Roger C. Odell, a co-founder of Electroscope, was, at an times relevant hereto,

Defendants Robert D. Tucker, Joe W. Tippett, Donald R. Temple, and C. Randle Voyles were, at

Defendant John G. Kinnard and Company, Inc. was the lead underwriter of the Offering.

Because 1,200,000 shares of Electroscope's common stock were issued pursuant to the Offering

The names and addresses of the purchasers of Electroscope common stock on the (Offering and

The Registration Statement and Prospectus contained materially false and misleading

Electroscope designs, manufactures, and sells medical devices used in electrostatic surgery,

At the heart of Electroscope's sales strategy is its "Distribution Agreement" with Valleylab.

The Registration Statement of which the Prospectus was a part and which became effective on

I am seeking to serve as a representative party on behalf of a class in one other action

2 . REVISED CONSOLIDATED AMENDED COMPLAINT

EXTRACTED KEY WORDS

PLAINTIFFS
DEFENDANT COLKITT
EXCHANGE
ERNST
SECURITIES
PURSUANT
FINANCIALS
EQUIMED COMMON STOCK
DERDEL
COURT
DISSEMINATION
LITIGATION
FILING
DIRECTORS
CLASS PERIOD
MISLEADING
MATERIAL FACTS
INTERNAL CONTROLS
EXCHANGE ACT
ACTION COMPLAINT
MATERIALLY FALSE
TRANSACTIONS
ONCOLOGY GROUP
LEAD PLAINTIFF
INDEPENDENT AUDITORS
MARKET PRICE
ANNUAL REPORT
CONTROLLER
DELAWARE COURT

                             IN  THE  UNITED  STATES  DISTRICT  COURT                 : ;:"::,
                        FOR  THE  EASTERN  DISTRICT  OF  PENNSYLVANIA                      ".      

                                     -

               -



                                                    .
IN  RE  EQUIMED,  INC.                              .       MAiTER  FILE
SECURITIES           LITIGATION                     .       NO.  98  - CV  -  5374  (NS)

                                                    .
THIS  DOCUMENT             RELATES  TO:             :
                                                    .
ALL  ACTIONS                                        .       JURY  TRIAL  DEMANDED
                                                    *


REVISED  CONSOLIDATED                         AMENDED           CLASS  ACTION  COMPLAINT

                     Plaintiff  Herbard  Limited,  having  been  appointed  Lead  Plaintiff  by 

(Pretrial  Order  No.  5,  at 73),  individually  and  on  behalf  of  all  others  similarly 

its  attorneys,  and  pursuant  to  the  May  9,  2000  Order  of  the  Court  granting  in  part 

denying  in  part  the  defendants'  motions  to  dismiss  the  Consolidated              Amended 

Action  Complaint  dated  February  19,  1999,  alleges  the  following,  based  upon,  among

other  things,  the  investigation  made  by  its  attorneys,  which  investigation  included, 

limitation:  (a)  review  and  analysis  of  filings  made  by  EquiMed,  Inc.  ("EquiMed"  or  the

"Company")  and  Ernst  & Young,  LLP.,  EquiMed's  independent  auditor,  with  the  Securities

and  Exchange  Commission  ("SEC");  (b)  review  and  analysis  of  public  statements  (written

or  oral)  by  Defendants,  including  press  releases  and  other  publications  disseminated  by

Defendants;  (d)  investigation  by plaintiffs'  counsel  of  other  sources  of  information 

certain  of  the  events  described  herein  including  pleadings  and  testimony  relating  to

litigation  by/or  against  certain  of  the  Defendants  in the  Delaware  Court  of  Chancery, 

United  States  District  Court  for  the  District  of  Maryland  and  the  Court  of  Common

SNIPPETS:

having been appointed Lead Plaintiff by the Court

Action Complaint dated February 19, 1999, alleges the following, based upon, among

"Company") and Ernst & Young, LLP., EquiMed's independent auditor, with the Securities

and Exchange Commission; review and analysis of public statements (written

Defendants; investigation by plaintiffs' counsel of other sources of information regarding

litigation by/or against certain of the Defendants in the Delaware Court of Chancery,

EquiMed common stock at the time of the inception

President and Chairman of its Board of Directors.

EquiMed and defendants Colkitt, Jerome Derdel, M.D., Raymond J. Caravan

deficiencies in EquiMed's accounting and other internal controls necessary to accurately

misled investors into believing that transactions through which Defendant

material information violated Sections 1 Oand 20of the Securities Exchange Act of

artificially inflated during the Class Period.

primarily owned by Defendant Colkitt, the market price of EquiMed stock was artificially

filing its annual financial statements late and that EquiMed was "considering" write-offs and

based on rumors and the failure of the Company to provide audited financials,

known is that Ernst & Young, EquiMed's independent auditors for the 1996 and 1997

The claims asserted herein arise under and pursuant to Sections 1 O

This Court has jurisdiction over this litigation pursuant to Section 27

misleading information to the investing public, occurred in part in this District.

the Colkitt Oncology Group, Inc. pursuant to a transaction in which

Beckett served as Controller for OSC.

1997 after having signed the Company's 1996 annual report on SEC Form 1 O-K.

aware of their materially false and misleading nature.

cc> EquiMed regularly communicated with the investing public through the dissemination of

The 1996 1 O-K and the June 10, 1997 press release were misleading--to investors in that they

3 . DOCKET B

EXTRACTED KEY WORDS

ENTRY
COMPLAINT
PLFFS
DOCKET
YAKOV SKARINSKY
LEAD PLFFS
DISTRICT COURT
DANIEL
DEFTS
APPOINTMENT
JUDGE NORMA
SHAPIRO
DISCOVERY
GENE
BURLESON
BRIAN
SMITH
FILING FEE
COUNSEL
DEMAND
PLAINTIFF YAKOV SKARINSKY
MANAGEMENT TRACK
STIPULATION
PURPOSES
MOTIONS SEEKING
RESPONSIVE PLEADING
CONSOLIDATED MEMBER
PARTIES
PRETRIAL CONFERENCE

Docket as of December 13, 1998 (retrieved 1/11/99)

Proceedings include all events.                                          e-SPEC
2:98cv5496    SKARINSKY v. EQUIMED, INC., et al
                                                                  98cv   5374
                                                            e-SPEC 98cv
                                                            5374
                       U.S. District Court
   U.S. District Court of Eastern Pennsylvania (Philadelphia)

               CIVIL DOCKET FOR CASE #: 98-CV-5496

SKARINSKY v. EQUIMED, INC., et al                           Filed: 10/16/98
Assigned to: JUDGE NORMA L. SHAPIRO          Jury demand: Plaintiff
Demand: $0,000                               Nature of Suit:  850
Lead Docket: None                            Jurisdiction: Federal Question
Dkt # in USDC ED PA : is 98-5374

Cause: 15:78m(a) Securities Exchange Act


YAKOV SKARINSKY, on Behalf of     DEBORAH R. GROSS
Himself and All Others            FAX 215-561-3000
Similarly Situated                (COR LD NTC)
     PLAINTIFF                    LAW OFFICES OF BERNARD M. GROSS,
                                  P.C.
                                  1500 WALNUT STREET
                                  SIXTH FLOOR
                                  PHILADELPHIA, PA 19102
                                  USA


   v.


EQUIMED, INC.
     DEFENDANT


DANIEL R. COLKITT
     DEFENDANT


JEROME DERDEL
     DEFENDANT


RAYMOND J. CARAVAN

SNIPPETS:

Docket as of December 13,

U.S. District Court of Eastern Pennsylvania

DANIEL R. COLKITT DEFENDANT

DANIEL BECKETT DEFENDANT

GENE E. BURLESON DEFENDANT

BRIAN C. SMITH DEFENDANT

filing fee $ 150 receipt # 681508

(Entry date 10/19/98)

8 originals mailed to counsel 10/19/98

10/16/98 -- Demand for jury trial by PLAINTIFF YAKOV SKARINSKY.

10/16/98 -- Special Case Management Track.

12/9/98 2 STIPULATION AND ORDER THAT C.A. 98-5374,

CONSOLIDATED FOR ALL PURPOSES, ETC., DEFTS' TIME TO ANSWER

PLFFS' COMPLAINTS IS CONTINUED; ALL MOTIONS SEEKING THE

APPOINTMENT OF LEAD PLFFS SHALL BE FILED BY 12/11/98;

THE APPOINTMENT OF LEAD PLFF; DEFTS SHALL FILE THEIR

RESPONSIVE PLEADING WITHIN 30 DAYS AFTER SERVICE OF THE

CONSOLIDATED COMPLAINT, ETC. (SIGNED BY JUDGE NORMA L.

SHAPIRO) 12/10/98 ENTERED AND COPIES MAILED.

12/9/98 -- Consolidated Member Case.

12/9/98 -- PRETRIAL ORDER NO. 1, ALL PARTIES SHALL APPEAR FOR AN

INITIAL PRETRIAL CONFERENCE ON WEDNESDAY,

DISCOVERY SHALL BE INITIATED, ETC. (SIGNED BY JUDGE NORMA

4 . DOCKET B 2

EXTRACTED KEY WORDS

DEFENDANT
ENTRY
MASTER
PLEADING
PLAINTIFF
CAPTION
CONSOLIDATED COMPLAINT
MOTIONS
DISTRICT COURT
SECURITIES
DANIEL
FILING
CLERK
APPOINTMENT
ORIGINALS
COUNSEL
DEMAND
MANAGEMENT TRACK
STIPULATION
PURPOSES PURSUANT
FRCPL
LITIGATION
INDICATING
FIRST NAMED PLAINTIFF
MOTIONS SEEKING
RESPONSIVE PLEADING
JUDGE NORMA
SHAPIRO
CONSOLIDATED MEMBER

Docket as of December 13, 1998 (retrieved 1/11/99)

Proceedings include all events.                                          e-SPEC
2:98cv5674    HERBARD LIMITED v. EQUIMED, INC., et al
                                                                  98     5374
                                                            e-SPEC 98
                                                            5374
                       U.S. District Court
   U.S. District Court of Eastern Pennsylvania (Philadelphia)

               CIVIL DOCKET FOR CASE #: 98-CV-5674

HERBARD LIMITED v. EQUIMED, INC., et al                     Filed: 10/26/98
Assigned to: JUDGE NORMA L. SHAPIRO          Jury demand: Plaintiff
Demand: $0,000                               Nature of Suit:  850
Lead Docket: None                            Jurisdiction: Federal Question
Dkt # in USDC EDPA : is 98-5374

Cause: 15:78m(a) Securities Exchange Act


HERBARD LIMITED, ON BEHALF OF     STUART H. SAVETT
ITSELF AND ALL OTHERS             FAX 215-923-9353
SIMILARLY SITUATED                (COR LD NTC)
     PLAINTIFF                    SAVETT, FRUTKIN, PODELL & RYAN,
                                  P.C.
                                  325 CHESTNUT STREET
                                  SUITE 700
                                  PHILA, PA 19106
                                  USA


   v.


EQUIMED, INC.
     DEFENDANT


DANIEL R. COLKITT, M.D.
     DEFENDANT


JEROME DERDEL, M.D.
     DEFENDANT


RAYMOND J. CARAVAN

SNIPPETS:

Docket as of December 13,

U.S. District Court of Eastern Pennsylvania

EQUIMED, INC. DEFENDANT

DANIEL BECKETT DEFENDANT

(Entry date 10/27/98)

8 originals to counsel

10/26/98 -- Demand for jury trial by PLAINTIFF HERBARD LIMITED.

10/26/98 -- Special Case Management Track.

12/8/98 2 STIPULATION AND ORDER THAT 98-5374,

CONSOLIDATED FOR ALL PURPOSES PURSUANT TO RULE 42OF THE

FRCPL THE CLERK SHOULD MAINTAIN A MASTER DOCKET AND MASTER

FILE UNDER THE CAPTION "IN RE EQUIMED, INC. SECURITIES

LITIGATION" MASTER FILE 98-5374, ALL ORDERS, PLEADINGS,

MOTIONS AND OTHER DOCUMENTS SHOULD,

INDICATING THAT IT IS APPLICABLE TO FEWER THAN ALL OF THESE

THE CLERK SHOULD FILE SUCH PLEADING

IN THE MASTER FILE AND NOTE SUCH FILING IN THE MASTER

NAME OF THE FIRST NAMED PLAINTIFF SHOULD BE INSERTED IN THE

ALL MOTIONS SEEKING THE APPOINTMENT OF LEAD

CONSOLIDATED COMPLAINT SHALL BE FILED 30 DAYS AFTER THE

APPOINTMENT OF LEAD PLAINTIFF; DEFENDANTS SHALL FILE THEIR

RESPONSIVE PLEADING WITHIN 30 DAYS AFTER SERVICE OF THE

CONSOLIDATED COMPLAINT ETC (SIGNED BY JUDGE NORMA L.

SHAPIRO) 12/9/98 ENTERED AND COPIES MAILED

12/8/98 -- Consolidated Member Case.

5 . DOCKET A

EXTRACTED KEY WORDS

COLKITT
PLAINTIFFS
DERDEL
SECURITIES
CARAVAN
EXCHANGE
FINANCIALS
BECKETT
MEDICARE
ERNST
PEARSON
CLASS PERIOD
DIRECTORS
ONCOLOGY
FALSE CLAIMS
COMMON STOCK
MINORITY SHAREHOLDER LITIGATION
MISLEADING
MATERIAL FACTS
PENNSYLVANIA
QUARTERLY REPORT
TRANSACTIONS
CHAMPUS
INTERNAL CONTROLS
ALLEGATIONS
EXCHANGE ACT
MATERIALLY FALSE
UNITED STATES
INDEPENDENT DIRECTORS

                    IN THE UNITED STATES DISTRICT COURT
                  FOR THE EASTERN DISTRICT OF PENNSYLVANIA

   DAVID NEHME and THOMAS
   JEWETT, on behalf of themselves
   and all others similarly situated,

                         Plaintiffs,

              v.

   EQUIMED, INC.; and
   DOUGLAS R. COLKITT, M.D.;
   JEROME DERDEL, M.D.;
   RAYMOND J. CARAVAN;
   DANIEL BECKETT;
   LARRY W. PEARSON;
   GENE E. BURLESON; and
   BRIAN C. SMITH,

                         Defendants.
   __________________________________

   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :
   :

   CIVIL ACTION
   NO. 98-CV-5374 (NS)

   CLASS ACTION COMPLAINT
   (filed Oct. 20, 1998)

SNIPPETS:

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

DOUGLAS R. COLKITT, M.D.; JEROME DERDEL, M.D.; RAYMOND J. CARAVAN; DANIEL BECKETT; LARRY W.

Plaintiffs, individually and on behalf of all others similarly situated, by their attorneys,

Plaintiffs' information and belief are based upon, among other things, the investigation made rtain of the events described herein including pleadings and testimony relating to litigation

EquiMed common stock is 75% owned by defendant Douglas R. Colkitt, M.D., EquiMed's Chief

Specifically, EquiMed has failed to fully and fairly disclose at least the following facts: *

* EquiMed lacked and/or failed to adequately maintain basic internal controls and accounting

defendants lacked a reasonable basis for representing that EquiMed's reported levels of net

In particular, the Company's public statements regarding litigation against the Company was irectors of Colkitt-owned entities such as OSC and their positions as directors, officers and/or

Instead of revealing these material facts, defendants, as set forth more fully herein, misled