This case was last updated from PACER on 08/23/2021 at 07:14:41 (UTC).

BATAN et al v. WAHL et al

Case Summary

On June 24, 2021, Maria Batan and Clemente Batan (“Plaintiffs”), represented by Jonathan M. Zimmerman of Scott Scott, attorneys at law, LLP, on behalf of Nominal Defendant Healthcare Services Group, Inc. (“HCSG” or the “Company”), filed a verified shareholder derivative complaint against Theodore Wahl, Michael E. Mcbryan, Daniel P. Mccartney, John C. Shea And Matthew J. Mckee (collectively, “Defendants”), seeking declaratory relief, accounting of all losses and restitution for individual Defendants’ alleged breaches of fiduciary duties and allegedly false and misleading statements made in alleged violation of the Securities Exchange Act of 1934. This case is filed in the U.S. District Court in the Eastern District of Pennsylvania.

 

In the complaint, the Plaintiffs alleged that “The Individual Defendants had actual or constructive knowledge that the Company issued materially false and misleading statements and/or omitted material statements, and they failed to correct the Company’s false and misleading statements and/or omissions of material facts. The Individual Defendants had actual knowledge of the misrepresentations and omissions of material fact set forth herein, or acted with reckless disregard for the truth, in that they failed to ascertain and to disclose such facts, even though such facts were available to them. Such material misrepresentations and omissions were knowingly or recklessly made and were for the purpose and effect of perpetrating, facilitating, and perpetuating the manipulation of HCSG’s EPS.”

 

The Plaintiffs also alleged that “The Individual Defendants either benefitted financially from the improper conduct, including through insider sales, or received bonuses, stock options, or other similar compensation from HCSG that was tied to performance of EPS, other performance measures, and/or the artificially inflated valuation of HCSG, or received compensation that was unjust in light of the Individual Defendants’ bad faith conduct.” And that “The Individual Defendants’ misconduct alleged herein constituted an abuse of their ability to control and influence HCSG, for which they are legally responsible.”

 

Further, the Plaintiffs alleged that “As a result of the foregoing, and by failing to properly consider the interests of the Company and its public shareholders, the Individual Defendants have caused HCSG to waste valuable corporate assets, incurring many millions of dollars conducting the internal investigation, defending the ongoing SEC investigation, and defending the Securities Class Action. Moreover, HCSG has suffered and continues to suffer significant reputational and economic damage.”

 

There are four claims for relief laid down by the Plaintiffs, wherein the Plaintiffs have alleged that HCSG has sustained and continues to sustain significant damages. Further, Plaintiffs, as shareholders and representatives of HCSG, have sought restitution from the individual Defendants and an order from this Court disgorging all profits.

 

In its prayer, the Plaintiffs requested the Court to pass a judgment that Plaintiffs are adequate representatives of the Company and to pass an order that individual Defendants have breached their fiduciary duties to HCSG directing the individual Defendants, jointly and severally, to account for all losses and/or damage together with prejudgment and post-judgment interest. Further, the Plaintiffs requested the Court for awarding HCSG restitution from the individual Defendants, and each of them along with costs of litigation. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-02810

  • Filing Date:

    06/24/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Security

  • Courthouse:

    Pennsylvania Eastern District

Judge Details

Presiding Judge

KAREN S. MARSTON

 

Party Details

Plaintiffs

MARIA BATAN

CLEMENTE BATAN

Defendants

JOHN C. SHEA

HEALTHCARE SERVICES GROUP, INC.

MICHAEL E. MCBRYAN

DANIEL P. MCCARTNEY

THEODORE WAHL

MATTHEW J. MCKEE

Attorney/Law Firm Details

Plaintiff Attorney

JONATHAN M. ZIMMERMAN

Attorney at SCOTT SCOTT, ATTORNEYS AT LAW, LLP

The Helmsley Building, 230 Park Avenue, 17Th Floor

New York, NY 10169

Defendant Attorneys

ROBERT L. HICKOK

Attorney at TROUTMAN PEPPER HAMILTON SANDERS LLP

3000 Two Logan Sq, 18Th & Arch Sts

Philadelphia, PA 19103-2799

JAY A. DUBOW

Attorney at TROUTMAN PEPPER HAMILTON SANDERS LLP

3000 Two Logan Square, 18Th & Arch Sts.

Philadelphia, PA 19103-2799

JOANNA J. CLINE

Attorney at TROUTMAN PEPPER HAMILTON SANDERS LLP

18Th & Arch Sts., 3000 Two Logan Sq

Philadelphia, PA 19103-2799

WHITNEY R. REDDING

Attorney at TROUTMAN PEPPER HAMILTON SANDERS LLP

501 Grant St Suite 300, Union Trust Building

Pittsburgh, PA 15219-4429

 

Court Documents

#11

(#11) MOTION for Pro Hac Vice of Scott R. Jacobsen ( Filing fee $ 40 receipt number APAEDC-15350407.) filed by CLEMENTE BATAN, MARIA BATAN..(ZIMMERMAN, JONATHAN) (Entered: 08/20/2021)

#10

(#10) MOTION for Pro Hac Vice filed by CLEMENTE BATAN, MARIA BATAN, Certificate of Service.(ZIMMERMAN, JONATHAN) (FILED IN ERROR - ATTORNEY HAS RE-FILED #11 ) Modified 8/20/21 (fdc). Modified on 8/20/2021 (lvj, ). (Entered: 08/20/2021)

#9

(#9) ORDER THAT THIS CASE IS ALSO STAYED. SIGNED BY HONORABLE KAREN S. MARSTON ON 8/2/21. 8/2/21 ENTERED & E-MAILED.(fdc) (Entered: 08/02/2021)

#8

(#8) ORDER THAT A PRETRIAL CONFERENCE IS SET FOR 8/10/21 AT 9:00 AM BEFORE HONORABLE KAREN S. MARSTON. SIGNED BY HONORABLE KAREN S. MARSTON ON 7/27/21. 7/27/21 ENTERED & E-MAILED.(fdc) (Entered: 07/27/2021)

#7

(#7) NOTICE of Appearance by WHITNEY R. REDDING on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(REDDING, WHITNEY) (Entered: 07/19/2021)

#6

(#6) NOTICE of Appearance by JOANNA J. CLINE on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(CLINE, JOANNA) (Entered: 07/19/2021)

#5

(#5) NOTICE of Appearance by ROBERT L. HICKOK on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(HICKOK, ROBERT) (Entered: 07/19/2021)

#4

(#4) NOTICE of Appearance by JAY A. DUBOW on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(DUBOW, JAY) (Entered: 07/19/2021)

#3

(#3) STIPULATION AND ORDER REGARDING CONSOLIDATION AND APPOINTMENT OF CO-LEAD COUNSEL AND LIAISON COUNSEL. SIGNED BY HONORABLE KAREN S. MARSTON ON 6/30/21. 6/30/21 ENTERED & E-MAILED.(fdc) (Entered: 06/30/2021)

#2

(#2) STIPULATION AND [PROPOSED] ORDER REGARDING CONSOLIDATION AND APPOINTMENT OF CO-LEAD COUNSEL AND LIAISON COUNSEL by CLEMENTE BATAN, MARIA BATAN. (ZIMMERMAN, JONATHAN) (Entered: 06/29/2021)

1 #2

Designation Form

1 #1

Civil Cover Sheet

#1

(#1) COMPLAINT VERIFIED SHAREHOLDER DERIVATIVE against HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL ( Filing fee $ 402 receipt number 0313-15212369.), filed by MARIA BATAN, CLEMENTE BATAN. (Attachments: #1 Civil Cover Sheet, #2 Designation Form)(ZIMMERMAN, JONATHAN) (Entered: 06/24/2021)

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Docket Entries

  • 08/20/2021
  • View Court Documents
  • Docket(#11) MOTION for Pro Hac Vice of Scott R. Jacobsen ( Filing fee $ 40 receipt number APAEDC-15350407.) filed by CLEMENTE BATAN, MARIA BATAN..(ZIMMERMAN, JONATHAN) (Entered: 08/20/2021)

    Read MoreRead Less
  • 08/20/2021
  • View Court Documents
  • Docket(#10) MOTION for Pro Hac Vice filed by CLEMENTE BATAN, MARIA BATAN, Certificate of Service.(ZIMMERMAN, JONATHAN) (FILED IN ERROR - ATTORNEY HAS RE-FILED #11 ) Modified 8/20/21 (fdc). Modified on 8/20/2021 (lvj, ). (Entered: 08/20/2021)

    Read MoreRead Less
  • 08/02/2021
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  • Docket(#9) ORDER THAT THIS CASE IS ALSO STAYED. SIGNED BY HONORABLE KAREN S. MARSTON ON 8/2/21. 8/2/21 ENTERED & E-MAILED.(fdc) (Entered: 08/02/2021)

    Read MoreRead Less
  • 07/27/2021
  • View Court Documents
  • Docket(#8) ORDER THAT A PRETRIAL CONFERENCE IS SET FOR 8/10/21 AT 9:00 AM BEFORE HONORABLE KAREN S. MARSTON. SIGNED BY HONORABLE KAREN S. MARSTON ON 7/27/21. 7/27/21 ENTERED & E-MAILED.(fdc) (Entered: 07/27/2021)

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  • 07/19/2021
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  • Docket(#7) NOTICE of Appearance by WHITNEY R. REDDING on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(REDDING, WHITNEY) (Entered: 07/19/2021)

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  • 07/19/2021
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  • Docket(#6) NOTICE of Appearance by JOANNA J. CLINE on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(CLINE, JOANNA) (Entered: 07/19/2021)

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  • 07/19/2021
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  • Docket(#5) NOTICE of Appearance by ROBERT L. HICKOK on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(HICKOK, ROBERT) (Entered: 07/19/2021)

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  • 07/19/2021
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  • Docket(#4) NOTICE of Appearance by JAY A. DUBOW on behalf of HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL with Certificate of Service(DUBOW, JAY) (Entered: 07/19/2021)

    Read MoreRead Less
  • 06/30/2021
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  • Docket(#3) STIPULATION AND ORDER REGARDING CONSOLIDATION AND APPOINTMENT OF CO-LEAD COUNSEL AND LIAISON COUNSEL. SIGNED BY HONORABLE KAREN S. MARSTON ON 6/30/21. 6/30/21 ENTERED & E-MAILED.(fdc) (Entered: 06/30/2021)

    Read MoreRead Less
  • 06/29/2021
  • View Court Documents
  • Docket(#2) STIPULATION AND [PROPOSED] ORDER REGARDING CONSOLIDATION AND APPOINTMENT OF CO-LEAD COUNSEL AND LIAISON COUNSEL by CLEMENTE BATAN, MARIA BATAN. (ZIMMERMAN, JONATHAN) (Entered: 06/29/2021)

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  • 06/25/2021
  • DocketSummons Issued as to HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL. Forwarded To: Jonathan M. Zimmerman on 6/25/21 (fdc, ) (Entered: 06/25/2021)

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  • 06/25/2021
  • DocketSummons Issued as to HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL. E-MAILED To: COUNSEL on 6/25/21 (bw, ) (Entered: 06/25/2021)

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  • 06/24/2021
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  • Docket(#1) COMPLAINT VERIFIED SHAREHOLDER DERIVATIVE against HEALTHCARE SERVICES GROUP, INC., MICHAEL E. MCBRYAN, DANIEL P. MCCARTNEY, MATTHEW J. MCKEE, JOHN C. SHEA, THEODORE WAHL ( Filing fee $ 402 receipt number 0313-15212369.), filed by MARIA BATAN, CLEMENTE BATAN. (Attachments: #1 Civil Cover Sheet, #2 Designation Form)(ZIMMERMAN, JONATHAN) (Entered: 06/24/2021)

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