Veterinary Centers Settles Shareholder Suits

Santa Monica-based Veterinary Centers of America Inc. agreed to pay an undisclosed sum to settle lawsuits by shareholders who accused it of misleading investors about its prospects while insiders made millions selling their stock. The largest network of free-standing animal hospitals said the settlement of the suits will be covered through insurance or through reserves and won’t affect operating results. “While we continue to deny liability, the settlement of these lawsuits is in our stockholders’ best interest,” Veterinary Centers Chief Executive Bob Antin said. The case sought class-action status on behalf of those who bought shares in the company between Feb. 15 and Nov. 14, 1996, and accused insiders at the veterinary hospitals and diagnostic labs of selling shares valued at more than $13 million before the stock plummeted to about $8 from as high as $32.75. The stock fell 75 cents to close at $19.88 on Nasdaq.