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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

In re: EQUIMED, INC., Debtor * * * *

* * * * * CIVIL NO. H-00-1216 Bankruptcy No. 00-1-1147-PM

MOBILE DIAGNOSTECH, INC., et al. Movants vs. MERRILL COHEN, Trustee Respondent * * * *

CIVIL NO. H-01-2677

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MEMORANDUM OPINION On February 4, 2000, Mobile Diagnostech, Inc., A. Jerome DiGiacobbe, Jr. and Calvin Zontine ("the petitioning creditors") filed an involuntary petition in bankruptcy with respect to EquiMed, Inc. ("EquiMed") in the United States Bankruptcy Court for the District of Maryland. No. 00-1-1147-PM. In re EquiMed, Inc., Bankruptcy

Thereafter, EquiMed was adjudicated by the

Bankruptcy Court to be a debtor under Chapter 7 of the United States Bankruptcy Code. appointed EquiMed. Trustee for On March 3, 2000, Merrill Cohen was the bankruptcy estate of the debtor

On April 27, 2000, the Trustee filed in the Bankruptcy Court an adversary proceeding, naming as defendants more than 80 persons and entities. Many of the defendants named in the

adversary proceedings are also defendants in United States ex rel. Rahman v. Oncology Associates, P.C., et al., Civil No. H95-2241 ("Rahman"), a civil action which has been pending in EquiMed is one of the defendants

this Court for several years.

in the Rahman case, as are some of its subsidiaries. On May 2, 2000, this Court entered an Order withdrawing reference of the EquiMed bankruptcy case with respect to all matters in which a proposed settlement in the Rahman action had designated for Bankruptcy Court review and with respect to the adversary proceeding. this Court as In re As withdrawn, that case was docketed EquiMed, Inc., Civil No. in

H-00-1216.

Following a hearing held on September 8, 2000 in Rahman, the Court entered an Order approving settlement agreements entered into by various parties in that case. the EquiMed case, the Court has been During the pendency of required to rule on

numerous matters involving the Trustee and other parties in the withdrawn adversary proceeding. See Memorandum and Order of

July 24, 2000 (ruling, inter alia, on motions to vacate the Order withdrawing reference of the adversary proceeding);

Memorandum and Order of July 26, 2000 (denying a motion filed by certain defendants in the adversary proceeding seeking the

issuance of an Order to show cause to be served on the Trustee); Memorandum and Order of October 30, 2000 (granting in part and denying in part five separate motions seeking to dismiss the 2

amended complaint in the adversary proceeding).1 After the Court entered a Scheduling Order in the EquiMed case, the parties engaged in prolonged and complex settlement discussions. Eventually a settlement was reached, and a

Settlement Agreement has now been executed by the Trustee and by many other parties. On August 30, 2001, the Trustee filed a motion for approval of the settlement pursuant to

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