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ORANGE COUNTY BRIEFLY

October 11, 1994

Coram Health Care Corp.: The Newport Beach home-infusion company said Monday it will pay $25 million and sell $50.6 million of warrants to settle a class-action shareholder fraud suit filed against subsidiary T2 Medical Inc.

The suit was in 1993 before T2's merger with Coram, which is in the process of moving its corporate headquarters to Denver. The suit, filed in U.S. District Court in Georgia, alleged wrongdoing by T2, an Atlanta company that supplies intravenous drugs and nutrients to patients in their homes.

In September, Coram agreed to pay $500,000 to end a two-year investigation by federal regulators into whether T2's infusion therapy centers violated federal anti-kickback laws. Without admitting wrongdoing, T2 Medical agreed to stop managing centers owned jointly by physicians and T2.

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