If you purchased or otherwise acquired the common stock of FPA Medical Management, Inc. ("FPA" or the "Company") (NASDAQ/NQMS: FPAM) between February 27, 1997 and May 15, 1998 (the "Class Period"), the following applies to you. If you did not purchase or otherwise acquire stock during the class period, but simply held the stock, you are not eligible to participate in the suit. Also excluded from the class are the defendants, officers and directors of the company, members of their immediate families and their legal representatives, heirs, successors or assigns and any entity in which any defendant has or had a controlling interest.
FPA is a national physician practice management organization that administers and manages primary care physician networks which contract with HMOs and other prepaid insurance plans to provide physician and related health care services and provides contract management support services to hospital emergency departments.
The lawsuit alleges that while concurrently selling over 300,000 shares of FPA for proceeds of over $7 million, defendants concealed from their shareholders that FPA was having extreme difficulties in merging and integrating its numerous acquisitions, that costs were soaring due to such difficulties, that FPA lacked internal controls to successfully manage its rapid expansion, and that many of the acquisitions were known to be historically unprofitable, all of which would cause losses in the Company's operating results and necessitate significant write downs and pre-tax charges, and that defendants continuously disseminated materially false and misleading statements regarding the Company's current financial performance and future business prospects.
On May 15, 1998 the Company announced that it will post a loss of $9.1 million for the first fiscal quarter, 1998 and expects a pre-tax charge of up to $200 million to be recorded for the second fiscal quarter, 1998. Upon these revelations, the Company's stock fell from a high of $12 per share on May 14 to a low of $5.50 per share on May 15 on extraordinary volume of over 18 million shares traded. Plaintiff seeks to recover damages on behalf of class members.

Update

This case has been settled. The Claims Administrator for this litigation is Gilardi & Co. LLC. The deadline for submitting a proof of claim was November 25, 2003. If you would like further information about the settlement, please go to www.gilardi.com or call (415) 461-0410.
If you have any further questions, please feel free to contact us.