In Re Quantum Health Resources, Inc. Securities Lit.

REVISED ORDER APPROVING PLAN OF ALLOCATION AND SETTLEMENT AND AWARDING ATTORNEYS FEES AND EXPENSES

The court finds there is no inherent risk of attorneys fee non-recovery in securities class action suits. Thus, the court finds it appropriate in securities class actions to depart significantly from the Ninth Circuit’s “benchmark” 25$ fee award unless the court finds there is actual risk.

I. BACKGROUND

Class actions were filed against Quantum Health Resources, Inc. and various officers and directors alleging violations of §§ 10(b) and 20(b) of the Securities Exchange Act of 1934 and Rule 10b — 5 promulgated thereunder. Plaintiffs alleged Quantum made materially false and misleading public statements to maintain an artificially high market price for Quantum securities. According to Plaintiffs, Quantum knowingly withheld information about improper billing practices, and falsely inflated its revenues, operating income and earnings in public statements.

During the fourteen months between filing and settlement, Plaintiffs engaged in written discovery, consisting mainly of requesting the production of documents from Quantum and third parties. Other than a partly successful motion to…