MOUNT LAUREL, July 14 MedQuist Inc.(Pink Sheets: MEDQ) today announced that its board of directors declared adividend of $2.75 per share on MedQuist's common stock. The dividend will bepaid on August 4, 2008 to shareholders of record as of the close of businesson July 25, 2008.
Newcastle Partners, L.P., along with other holders of MedQuist's commonstock, have filed a shareholder derivative lawsuit in the Superior Court ofNew Jersey, Chancery Division, seeking, among other things, to enjoin thepayment of a substantial dividend. Though the court denied Newcastle'srequest for a temporary restraining order enjoining the declaration of thedividend, it has set July 31, 2008 as a date for a hearing regarding apreliminary injunction enjoining a substantial dividend. If the court issuesthe requested injunctive relief and the dividend declared by the board isenjoined, it will be paid on the first practicable business day following thelifting or expiration of the injunction.
MedQuist is the largest Medical Transcription Service Organization (MTSO)in the world, and a leader in technology-enabled clinical documentationworkflow. MedQuist's enterprise solutions -- including mobile voice capturedevices, speech recognition, Web-based workflow platforms, and global networkof medical editors -- help healthcare facilities improve patient care,increase physician satisfaction, and lower operational costs. For moreinformation, please visit www.medquist.com.
Disclosure Regarding Forward-Looking Statements:
Some of the statements in this press release constitute "forward-lookingstatements" within the meaning of the U.S. Private Securities LitigationReform Act of 1995. These statements are not historical facts but rather arebased on the company's current expectations, estimates and projectionsregarding the company's business, operations and other factors relatingthereto. Words such as "may," "will," "could," "would," "should,""anticipate," "predict," "potential," "continue," "expects," "intends,""plans," "projects," "believes," "estimates" and similar expressions are usedto identify these forward-looking statements. The forward-looking statementscontained in this press release include, without limitation, statements aboutthe timing of the payment of the declared dividend and the hearing regarding apreliminary injunction enjoining a substantial dividend. These statements areonly predictions and as such are not guarantees of future performance andinvolve risks, uncertainties and assumptions that are difficult to predict,including, without limitation, the risk that the settlement agreement is notconsummated, the risk that the case is not dismissed with prejudice, and therisk of possible future claims against the company. For a discussion of theserisks, uncertainties and assumptions, any of which could cause our actualresults to differ from those contained in the forward-looking statement, seethe section of the company's Annual Report on Form 10-K for the year endedDecember 31, 2007, entitled "Risk Factors" and discussions of potential risksand uncertainties in the MedQuist's subsequent filings with the Securities andExchange Commission.
SOURCE MedQuist Inc.