On Tuesday, August 24, 2010, a proposed settlement of the lawsuit by Healthtronics investors was announced. The proposed settlement will resolve the claims asserted in these actions, and all claims which could have been asserted in connection with the transaction that is the subject of these actions—the merger of HealthTronics (the “Merger”). As a result of the proposed settlement, HealthTronics disclosed additional important information in Amendment No. 2 to the Schedule 14D-9 in connection with HealthTronics shareholders’ vote on the Merger and plaintiffs intend to apply to the Court for an award of no more than $292,500 for attorneys’ fees and expenses. A settlement hearing will be held on November 8, 2010 at 2:00 P.M. The Settling Parties believe that the terms of the Settlement are fair, reasonable and adequate. The Settling Parties have concluded that further litigation of the Actions could be protracted and expensive and have taken into account the uncertainty and risks inherent in any litigation, especially in complex shareholder litigation like the Actions. The Settling Parties therefore believe it is desirable that the Actions should be fully and finally settled in the manner described in the Stipulation and Agreement of Compromise, Settlement and Release (the “Stipulation”).
On May 11, 2010, on May 12, 2010, and on May 14, 2010 plaintiffs filed lawsuit asserting that Defendants breached fiduciary duties or aided and abetted in breaching fiduciary duties by, among other things, agreeing to the Transaction at an allegedly inadequate price.