G. Martin Meyers Announces Class Action Complaint Filed on Behalf of Former Shareholders of Coram Healthcare Corporation

Business Wire, Nov 17, 2000

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Nov. 17, 2000

The Law Offices of G. Martin Meyers, P.C. announced today, pursuant to Section 21(D)(a)(3)(A)(i) of the Securities Exchange Act of 1934 (the "Exchange Act"), notice that a class action lawsuit was filed on November 8, 2000, in the United States District Court for the District of New Jersey, on behalf of all persons who were holders of shares of the common stock of Coram Healthcare Corporation ("Coram"), on or before August 8, 2000, and who sold some or all of their Coram common stock shares at any time on or after August 8, 2000, following the announcement of Coram's bankruptcy filing issued on that date. The Complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder. Specifically, the Complaint alleges that the defendants perpetrated a fraud upon the market for shares of Coram common stock, by circulating materially false and misleading statements and/or omissions in press releases and otherwise, designed to artificially deflate the market price of Coram stock, in furtherance of a plan designed to deprive its stockholders of the value of their equity in the said stock, and provide for Coram's emergence from bankruptcy proceedings as a "privately held company," depriving plaintiffs and the proposed class of Coram stockholders of fair compensation for the value of their Coram common stock.

The Complaint names as defendants three entities holding long-term indebtedness of Coram in the approximate amount of $260 million, including Cerberus Partners, L.P., Goldman, Sachs Credit Partners, L.P., Foothill Capital Corporation, (collectively the "Lender Defendants"), and the present and former officers and directors of Coram, and of the Lender defendants or their affiliates, who participated in the alleged scheme of securities fraud which forms the basis for the action, including Stephen Feinberg, Daniel D. Crowley, Scott R. Danitz, Scott T. Larsen, Allen J. Marabito, Domenic A. Meffe, Vito Ponzio, Jr., Joseph D. Smith, Richard M. Smith, Donald J. Amaral, William J. Casey, L. Peter Smith, and Sandra L. Smoley, (collectively, the "Officer and Director Defendants"). Coram itself is not named as a defendant as it is or was the subject of bankruptcy proceedings, as of the date of the filing of the Complaint, and the filing of an Amended Complaint, on November 15, 2000.

Any member of the proposed class may move the court to serve as lead plaintiff no later than sixty days from the date of this notice.

If you wish to discuss this action, or you have any questions concerning this notice you may, but are not required to, contact:

G. Martin Meyers, Esq. Law Offices of G. Martin Meyers, P.C. 35 West Main Street, Suite 106 Denville, New Jersey 07834 973 625-0838 Fax: 973 625-5350 Internet Address: garymeyers@nac.net