MT. LAUREL, N.J., Dec. 10 /PRNewswire-FirstCall/ -- MedQuist Inc. (MEDQ.PK), a leading provider of electronic medical transcription, health information and document management services, today announced that it has received notice of a shareholder putative class action lawsuit filed against the company in the United States District Court for the District of New Jersey. The action, entitled William Steiner v. MedQuist, Inc., et al., Case No. 1:04-cv-05487-FLW, was filed with the Court on November 8, 2004 against the company and certain former company officials, purportedly on behalf of an alleged class of all persons who purchased MedQuist common stock during the period from April 23, 2002 through November 2, 2004, inclusive (the “Class Period”). The complaint specifically alleges that defendants violated federal securities laws by purportedly issuing a series of false and misleading statements to the market throughout the Class Period, which statements allegedly had the effect of artificially inflating the market price of the Company’s securities. The complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. Plaintiff seeks unspecified damages. Named as defendants, in addition to the company, are its former president & chief executive officer and its former executive vice president & chief financial officer.
MedQuist has retained the law firm of Winston & Strawn LLP to represent it in the matter.
“This lawsuit was filed following MedQuist’s issuance of a press release concerning its previous financial statements. The lawsuit raises, among other things, questions regarding MedQuist’s billing practices. We have been proactively and responsibly working with our clients to address these questions and will continue to do so”, MedQuist Chief Executive Officer Howard S. Hoffmann said. “The company is in the process of evaluating the lawsuit and will respond appropriately once our review is complete.”
About MedQuist
MedQuist is a leading provider of electronic medical transcription, health information and document management services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services. MedQuist is a member of the Philips Group of Companies.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding MedQuist’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward- looking statements, see “Forward Looking Statements” in the Company’s Annual Report or Form 10-K for the fiscal year ended 2002.
Contact: Craig Martin Ruder Finn D.C. 202.974.5045 martinc@RuderFinn.com
MedQuist Inc.
CONTACT: Craig Martin of Ruder Finn D.C., +1-202-974-5045, ormartinc@RuderFinn.com, for MedQuist Inc.