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BAKER v. HEALTH MGT. SYS.

98 N.Y.2d 80 (2002)

772 N.E.2d 1099

745 N.Y.S.2d 741

THOMAS BAKER, on Behalf of Himself and All Others Similarly Situated, et al., Plaintiffs, v. HEALTH MANAGEMENT SYSTEMS, INC., et al., Respondents. PHILLIP SIEGEL, Appellant.

Court of Appeals of the State of New York.

Decided April 25, 2002.

Attorney(s) appearing for the Case

Cadwalader, Wickersham & Taft, New York City (Dennis J. Block and Jonathan M. Hoff of counsel), for appellant.

Feder, Kaszovitz, Isaacson, Weber, Skala, Bass & Rhine LLP, New York City (Howard I. Rhine and Larry B. Miller of counsel), for Health Management Systems, Inc., respondent.

Judges SMITH, WESLEY and ROSENBLATT concur with Judge LEVINE; Chief Judge KAYE dissents and votes to answer the certified question in the affirmative in a separate opinion in which Judges CIPARICK and GRAFFEO concur.

OPINION OF THE COURT

LEVINE, J.

Appellant Phillip Siegel was the Chief Financial Officer of respondent Health Management Systems, Inc. (HMS). In that capacity, he was joined as a party defendant in several securities fraud class actions brought in the United States District Court, Southern District of New York, against HMS and various officers and directors. Although all claims against Siegel were ultimately...

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