PSS World Medical, Inc. (Nasdaq: PSSI), a Florida-based distributor of medical products, has announced the preliminary settlement of the securities class action pending against the company in the M.D. of Fla. The case was orginally filed in 1998 and arose out of PSS World's acquisition of Gulf South Medical Suppply. Trial was set to begin this November.
The settlement is for $16.5 million, with $13.2 million to be paid for by the company's insurers. PSS World also stated that "it expects to pursue all available legal remedies from Ernst & Young LLP, the auditor of Gulf South prior to the Company's acquisition of the entity, for damages associated with their audits of the Gulf South financial statements and public filings."