Dynacq Healthcare Inc.

Shareholders filed a class action lawsuit against the company and certain current and former officers and directors for allegedly violating federal securities laws by publishing materially misleading financial statements that did not comply with generally accepted accounting principles, making materially false or misleading statements or omissions regarding revenues and receivables, operations and financial results and engaging in an intentional fraudulent scheme aimed at inflating the value of Dynacq's stock. The class included all persons who purchased or otherwise acquired shares of the company's common stock during the period of November 27, 2002 through December 19, 2003. Dynacq has agreed to pay a $1.5 million class action settlement. (Aug-11-06) [TRADING MARKETS]