MT. LAUREL, N.J., Oct. 7 /PRNewswire-FirstCall/ -- MedQuist Inc. (Pink Sheets: MEDQ), a leading provider of electronic medical transcription, health information and document management services, has, as previously announced, been named as defendant in a class action filed in the United States District Court for the Central District of California. The action, entitled South Broward Hospital District, dba Memorial Regional Hospital, et al. v. MedQuist, Inc. et al., Case No. CV-04-7520-TJH-VBKx, was filed with the Court on September 9, 2004 against the company and certain present and former company officials, purportedly on behalf of an alleged class of non-governmental hospitals and medical centers that the complaint claims were wrongfully and fraudulently overcharged for transcription services by defendants. The complaint charges fraud, violation of the California Business and Professional Code, unjust enrichment, conversion, negligent supervision and violation of the federal RICO statute. Plaintiffs seek damages in an unspecified amount, plus costs and interest, an injunction against alleged continuing illegal activities, an accounting, punitive damages and attorneys’ fees. Named as defendants, in addition to the company, are its executive vice president of marketing and new business development, a senior vice president, its former executive vice president and chief legal officer, and its former executive vice president and chief financial officer. MedQuist has retained the law firm of Winston & Strawn LLP to represent it in the matter.
“We are diligently addressing this matter while continuing to deliver the highest levels of service to our customers,” said MedQuist Chief Executive Officer Howard S. Hoffmann. “Although MedQuist does not comment on the specifics of any litigation,” he continued, “we will do what is necessary to achieve an outcome that is in the best interests of our customers, employees and shareholders.”
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 statement” 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 “Risk Factors” in the Company’s Annual Report or Form 10-K for the most recently ended fiscal year.
Contact: Montieth M. Illingworth Ruder Finn Corporate & Financial 212.715.1679 illingworthm@ruderfinn.com Renee Calabro Ruder Finn Corporate & Financial 212.583.2750 calabror@ruderfinn.com
MedQuist Inc.
CONTACT: Montieth M. Illingworth, +1-212-715-1679,illingworthm@ruderfinn.com, or Renee Calabro, +1-212-583-2750,calabror@ruderfinn.com, both of Ruder Finn Corporate & Financial, for MedQuistInc.
