Week Adjourned: 8.28.09

Top Class Actions

Time for a little self-monitoring? CardioNet got hit with a securities class action lawsuit this week. What did they do? Well, the complaint charges that the company and some of its directors got a little carried away with their revenue projections for 2009, 2010 and 2011, particularly in light of the fact that the reimbursement rates for their MCOT services was under review by payors, and were likely to be reduced, not increased.  FYI—CardioNet “provides ambulatory, continuous and real-time outpatient management solutions for the monitoring of clinical information on an individual’s health.” suitcase

Bottom line, if you or anyone you know purchased CardioNet common stock between April 30, 2009 and June 30, 2009, inclusive, you may be eligible to join the suit as a plaintiff. 

Top Settlements

Will that be cash or credit? That’s what folks eligible for the Expedia settlement are asking themselves. It’s been all over the media, all week, and Abi blogged about it: Expedia has entered into a proposed $123.4 million settlement agreement in an effort to mitigate the damage caused by a class action alleging it shouldn’t have been bundling taxes and services fees onto the cost of vacations purchased through the site.

Basically, the suit alleged that Expedia, in charging its customers a “Tax Recovery Charge” and a “Service Fee,” during the period from January 10, 2001 through June 11, 2008 (i) committed deceptive or unfair practices in violation of the Washington Consumer Protection Act (“CPA”), and (ii) breached its contractual obligations from February 18, 2003 through December 11, 2006.

If approved, the settlement will provide for the distribution to Class Members of $123.4 million in cash payments and Expedia Settlement Credit that can be used for hotel reservations and “package” reservations that include hotel reservations.  

That’s a wrap—see you at the Bar.

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