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Park Dental Announces Separation From Its Administrative Service Provider
Date:3/3/2008

MINNEAPOLIS, March 3 /PRNewswire/ -- Park Dental, a Twin Cities area group dental practice that has been a mainstay in the Minnesota Dental community for 40-years, announced today that it has completed a deal under which it is separating its practice from its Boston, Massachusetts-based administrative services provider, American Dental Partners, Inc. (Nasdaq: ADPI). The separation is the result of the settlement of a lawsuit in which the doctors of Park Dental and a related group called the Dental Specialists recently obtained a jury award of over $130 million against ADPI and ADPI's Minnesota-based subsidiary, PDHC, Ltd.

Beginning in 2006, the Park Dental doctors sued ADPI and PDHC, which owned the rights to the 31 clinic locations out of which the Park Dental doctors operated and also employed the support staff that worked with the dentists. The dental group, which operates the Park Dental and The Dental Specialists clinics in the Twin Cities, alleged that ADPI and PDHC had overstepped their authority under the Minnesota law requiring that licensed dentists be responsible for all aspects of the practice of dentistry, and argued ADPI and PDHC breached other contractual and fiduciary obligations to the doctor group. Following a month long trial in late 2007, a Hennepin County, Minnesota jury sided with the dentists, awarding the doctor group more than $130 million, including $88 million in compensatory damages and $42 million in punitive damages. A recent report published in The National Law Journal and Verdict Search identified this verdict No. 11 on the list of the Top 100 largest jury verdicts nationally in 2007.

Following the verdict, the parties entered into negotiations that ultimately led to a settlement agreement signed on February 29, under which the Park Dental doctor group took back rights to 25 of the 31 Park Dental and Dental Specialist clinic spaces in the Twin Cities area. Once the settlement is fully implemented, Park Dental, the
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SOURCE Anthony Ostlund Baer Louwagie & Ross
Copyright©2008 PR Newswire.
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