America Service Settles Stock Fraud Action For $15M

Law360, New York (May 3, 2010, 2:07 PM EDT) -- America Service Group Inc. has agreed to pay $10.5 million and hand out more than $4 million in stock to settle shareholders’ allegations that the health care company manipulated its projected costs and profits to inflate share prices.

Following months of negotiation with ASG, lead plaintiffs in the consolidated securities litigation urged Judge William J. Haynes Jr. of the U.S. District Court for the Middle District of Tennessee to certify the class and allow the plaintiffs to notify members of the proposed settlement.

The slated settlement...
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