Denville, N.J.

A class-action lawsuit alleging fraud was filed on behalf of all common stock shareholders against the three companies holding the long-term indebtedness of bankrupt Coram Healthcare.

Filed in the U.S. District Court for the District of New Jersey, the suit alleges that the defendants - Cerberus Partners; Goldman, Sachs Credit Partners; and Foothill Capital, along with the present and former officers and directors of Denver-based Coram - sought to defraud shareholders of common stock by circulating false and misleading statements designed to artificially deflate the market price of Coram stock. The suit also alleges that the defendants tried to deprive stockholders of the equity in their stock by providing the means for Coram to emerge from bankruptcy proceedings as a privately held company.

The infusion company in August filed for Chapter 11 bankruptcy protection and submitted a reorganization plan that would give all of its equity to debt holders, leaving nothing for the company's 4,850 shareholders. At press time in early December, the company said it still planned to emerge from bankruptcy as a private business by the end of the year.

Although Coram was not named as a defendant in the suit, company officials said in a statement: "Legal counsel for Coram has preliminarily reviewed the complaint and believes that it is frivolous. The material facts alleged are demonstrably false and at odds with the public record."