Precis, Inc. Wins Lawsuit Brought by Warrant and Option Holders
July 08 2005 - 8:30AM
PR Newswire (US)
Precis, Inc. Wins Lawsuit Brought by Warrant and Option Holders
GRAND PRAIRIE, Texas, July 8 /PRNewswire-FirstCall/ -- A Tarrant
County trial court Thursday orally granted Precis, Inc's
(NASDAQ:PCIS) motion for judgment in its favor notwithstanding a
previous jury's verdict and denied the plaintiffs' motion for a
judgment in their favor. In making its ruling, the court agreed
with Precis that, because the jury found that there was no fraud
committed by Precis, the claims brought by the plaintiffs were not
permitted under Texas law. A written order and judgment are
expected to be issued in the coming days. In May 2005, in a lawsuit
brought by a group of warrant and option holders led by Robert
Kirk, a jury in Tarrant County, Texas determined that Precis did
not act fraudulently or with malice in its dealings with the
plaintiffs but did award over $1.1 million in damages to the
plaintiffs based on findings of negligence. The plaintiffs were
holders of Precis warrants and options who alleged that they had
attempted to exercise their securities in 2002. The ruling relieves
Precis of any obligation to pay the jury's monetary award. "We are
very pleased with the court's ruling. It's an important victory for
our company and our shareholders. Obtaining this relief from old
litigation is much welcomed as we focus on the future and implement
our new strategic plans and introduce new products and services,"
said Frank Apodaca, President of Precis. According to Eliseo Ruiz
III, Precis' Vice President and General Counsel, "We always
believed that the plaintiffs' claims were without merit. We are
delighted that the court was able to honor the jury's findings of
no fraud and correctly hold that the plaintiffs' negligence claims
were not valid under Texas law." The plaintiffs had alleged that
Precis, through a former employee, agreed to provide certain
information deemed necessary by the plaintiffs for them to exercise
their warrants and options for the purchase of Precis Common Stock
in May, 2002, and then failed to timely provide the information.
The case was heard in the 236th District Court of Tarrant County,
Texas, Case No. 236 201 468 03. Precis was represented by Roger
Cowie and Brian Hamilton of Locke Liddell & Sapp, L.L.P's
Dallas office and by Charles Arnold of Cantey & Hanger in Fort
Worth About Precis Inc. Precis Inc. and its subsidiaries market
non-insurance health care savings programs, administer tax-favored
reimbursement accounts, provide third party administration services
to self funded employer groups and offer a broad range of financial
solutions such as health and life insurance to individuals and
businesses. For more information on Precis, its subsidiaries Care
125, Care Financial, LLC, and Access Administrators visit
http://www.precis-pcis.com/, http://www.care125.com/, and
http://www.care-financial.com/, http://www.ahs-access.com/
respectively. Contact: Eliseo Ruiz III Joe Diaz General Counsel The
RCG Group Precis, Inc. 480-675-0400 972-343-6500 Annemarie Marek
Marek & Company 469-235-2166 DATASOURCE: Precis, Inc. CONTACT:
Eliseo Ruiz III, General Counsel of Precis, Inc., +1-972-343-6500;
or Joe Diaz of The RCG Group, +1-480-675-0400; or Annemarie Marek
of Marek & Company, +1-469-235-2166, both for Precis, Inc. Web
site: http://www.precis-pcis.com/ http://www.care125.com/
http://www.care-financial.com/ http://www.ahs-access.com/
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