Health Management

IN RE HEALTH MANAGEMENT, INC. SECURITIES LIT.

NO. CV 96-889 (ADS).

970 F.Supp. 192 (1997)

In re HEALTH MANAGEMENT, INC. SECURITIES LITIGATION.

United States District Court, E.D. New York.

July 21, 1997.

Kaplan, Kilsheimer & Fox, L.L.P. by Frederic S. Fox, Richard J. Kilsheimer, Joel B. Strauss, New York City; Zwerling, Schacter & Zwerling, L.L.P. by Jeffrey C. Zwerling, New York City, for Plaintiffs.

Edwards & Angell, New York City, for Defendant BDO Seidman, L.L.P.; Ira Greenberg, Mark J. Goldberg, of counsel.

Reed, Smith, Shaw & McClay, Pittsburgh, PA, for Defendants Irwin Hirsch, Lloyd N. Myers; W. Thomas McGough, Jr., Theresa C. Williams-Harris, Richard J. DeMarco, Jr., of counsel.

Matthew S. Dontzin, New York City, for Defendant Clifford E. Hotte; Edward Wolf, of counsel.

Poli & Lamura, Northport, NY, for Defendant Virginia Belloise; John G. Poli, Barry J. Casper, Lawrence Kushnick, of counsel.

MEMORANDUM DECISION AND ORDER

SPATT, District Judge.

This action arises from a consolidated amended complaint (the "complaint") by the plaintiffs on behalf of all persons who purchased the common stock of Health Management, Inc. ("Health Management") from August 25, 1994 through February 26, 1996 (the "Class Period"), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78t(a) ("Section 10(b)" and "Section 20(a)", respectively), and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission, 17 C.F.R. § 240.10b-5 ("Rule 10b-5"), against Health Management, certain of its officers and/or directors-specifically, Irwin Hirsh ("Hirsh"), Lloyd N. Myers ("Myers"), Clifford E. Hotte ("Hotte"), Drew W. Bergman ("Bergman"), and Virginia Belloise ("Belloise") (collectively, the "Individual Defendants"), and its outside auditor, BDO Seidman, LLP ("BDO").

By a Final Judgment and Order of Partial Dismissal of Action dated June 9, 1997, this action was dismissed as to Health Management....