Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuits Have Been Filed Against American Dental Part...(disclose that American Dental engaged in...),Health

Date:2/15/2008

disclose that American Dental engaged in tortious and otherwise unlawful conduct in connection with providing, through a subsidiary company, PDHC, Ltd., administrative services to a Minnesota-based dental practice, Park Dental Group ("PDG"). In addition, American Dental failed to disclose that a significant portion of its reported earnings during the Class Period were allegedly derived from its wrongful conduct. Rather, American Dental allegedly falsely assured the public that a lawsuit brought by PDG against American Dental and PDHC for breach of a services agreement, among other claims, was "baseless and without merit." According to the complaints, defendants were motivated to engage in the wrongful and illegal conduct so that American Dental insiders, including certain defendants, could sell more than $20 million of their personally held American Dental stock at artificially inflated prices.

On December 12, 2007, a jury found American Dental or PDHC liable for breach of the service agreement with PDG, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, tortious interference with contract or prospective advantage, and defamation. The jury awarded PDG total compensatory damages of more than $88 million. On this news, the price of American Dental stock fell $5.36 per share, or 27.2 percent, from its closing price on December 11, 2007 to close at $14.34 per share on December 12, 2007. On the following day, December 13, 2007, American Dental reported that the jury also awarded PDG punitive damages of more than $42 million. In reaction to this news, American Dental stock fell another $9.72 per share, or 67.7 percent, to close at $4.62 per share on December 13, 2007.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. In the 2007 e
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SOURCE Cabraser Heimann & Bernstein, LLP Copyright©2008 PR Newswire. All rights reserved

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