Milberg Weiss Files Class Action Suit Against Sun Healthcare Group Inc. and Its Officers and Directors Alleging Misrepresentations and False Financial Statements

Business Wire, April 21, 1999

SAN DIEGO--(BUSINESS WIRE)--April 21, 1999--

Milberg Weiss today announced that a class action has been commenced in the United States District Court for the District of New Mexico on behalf of those who purchased or otherwise acquired Sun Healthcare Group, Inc. ("Sun") (NYSE:SHG) common stock during the period between June 2, 1998 and Feb. 1, 1999 (the "Class Period").

If you are a member of the Class described above, you may, no later than May 15, 1999, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.

The complaint charges Sun and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Sun and certain of its officers and directors issued false and misleading statements concerning the impact of the changes in the Medicare reimbursement system on Sun's operating results and business prospects. As a result, the price of Sun's shares were artificially inflated which the defendants then used as currency to fund their acquisition spree.

Plaintiff seeks to recover damages on behalf of those who purchased or otherwise acquired Sun common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco, Los Angeles and Boca Raton and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at http://www.milberg.com.