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AG to Dismiss All Claims Against Sandra and Joseph Martin Jr.

Attorney General Agrees to Dismiss All Claims Pending Against Sandra and Joseph Martin Jr. Related to the Operations of Pakachoag Acres Day Care Center
Press Release, June 23, 2006

Boston, MA - Barry S. Pollack of Sullivan & Worcester LLP, attorney for Sandra Martin and Joseph Martin, Jr., of Grafton, MA, announced today that the Attorney General has agreed to dismiss all claims pending against the Martins since 2004 related to the operations of Pakachoag Acres Day Care Center, Inc., of Auburn, MA.

Pollack stated: "In my opinion, the investigation and litigation should never have reached the stage it did and we are pleased that this matter can come to a conclusion without further unjustified financial harm to Mr. and Mrs. Martin." As part of the settlement agreement, the state will receive certain insurance proceeds and a discount in future rates charged by Pakachoag, while terminating all of its personal claims against the Martins.

Pollack added: "The government conducted an extremely flawed investigation and pursued litigation without consideration of fundamental accounting principles." He added, "These investigative problems gave rise to potential liability on the part of government officials for malicious prosecution." The settlement agreement contains a provision releasing government officials from liability for such claims, specifically identifying Matthew Berge, Jeffrey Collins, and Jason Barshak, from the Office of the Attorney General, and Jean Fecteau and Alicia Emsley of the Department of Early Education and Care, and Peter Bates from the State Auditor's office. Pollack explained that "the Martins were willing to release these government officials from liability for malicious prosecution claims because the settlement agreement reflects that the Martins did not remotely engage in the conduct that the government had previously alleged."

There has been no admission or finding of liability by or against any party.

Contact:
Barry Pollack (617.338.2910)
bpollack@sandw.com

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