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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 2)
Curative Health Services, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
231264102
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(CUSIP Number)
Mark R. Levy, Holland & Hart LLP, 555 l7th Street,
Denver, CO 80202 - (303) 295-8073
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(Name/Address/Telephone Number of Person Authorized to
Receive Notices and Communications)
December 13, 2000
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
Schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box / /.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7(b) for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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SCHEDULE 13D
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CUSIP No. 231264102 Page 2 of 8 Pages
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1 NAME OF REPORTING PERSON Joseph Feshbach
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (Entities Only)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /X/
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
Number of 15,500
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8 SHARED VOTING POWER
Shares 233,000
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9 SOLE DISPOSITIVE POWER
Beneficially Owned 15,500
by Each Reporting
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10 SHARED DISPOSITIVE POWER
Person With 233,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
248,000
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
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14 TYPE OF REPORTING PERSON
IN
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SCHEDULE 13D
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CUSIP No. 231264102 Page 3 of 8 Pages
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1 NAME OF REPORTING PERSON Matthew Feshbach
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (Entities Only)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /X/
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
Number of 49,100
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8 SHARED VOTING POWER
Shares 56,100
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9 SOLE DISPOSITIVE POWER
Beneficially Owned 49,100
by Each Reporting
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10 SHARED DISPOSITIVE POWER
Person With 56,100
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
105,200
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.3%
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14 TYPE OF REPORTING PERSON
IN
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SCHEDULE 13D
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CUSIP No. 231264102 Page 4 of 8 Pages
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ITEM 1. SECURITY AND ISSUER
This Schedule 13D relates to common stock, $.01 par value (the "Common
Stock"), of Curative Health Services, Inc. (the "Company"). The address of the
principal executive office of the Company is 150 Motor Parkway, Hauppauge, NY
11788.
ITEM 2. IDENTITY AND BACKGROUND
This Schedule 13D is filed by Joseph Feshbach and Matthew Feshbach
(together the "Feshbachs"). The Feshbachs were previously acting together as a
group in regard to certain aspects of the Common Stock.
Joseph Feshbach is an individual, whose business address is 27600
Edgerton Road, Los Altos Hills, CA 94022. His present principal occupation is
private investor.
Matthew Feshbach is an individual, whose business address is 8
Stonegate, Bellaire, FL 33756. His present principal occupation is private
investor.
The Feshbachs are United States citizens.
During the last five years, neither Joseph Feshbach nor Matthew
Feshbach has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors). In addition, during the last five years,
neither Joseph Feshbach nor Matthew Feshbach has been a party to a civil
proceeding of any judicial or administrative body of competent jurisdiction as a
result of which he was or is subject to a judgment, decree, or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to
such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On November 11, 1999, the Feshbachs made a determination, without any
written agreement, that they would become a group. Accordingly, they determined
to act together for the purposes of voting shares of the Common Stock and
considering and possibly implementing strategies to enhance the value of the
Common Stock. Together, when acting as a group, the Feshbachs could have been
considered as having owned beneficially more than 5% of the outstanding Common
Stock. On December 13, 2000, the Feshbachs made a determination, without any
written agreement, that they would cease being a group. Accordingly, they
determined to no longer act together for the purposes of (i) voting shares of
the Common Stock and (ii) considering and possibly implementing strategies to
enhance the value of the Common Stock. The Feshbachs provided no monetary
consideration to each other for acting together or for ceasing to act together
on these matters.
The funds used to purchase the shares of the Common Stock owned
beneficially by the Feshbachs were cash on hand and margin borrowings through
Bear Stearns Securities Corp. The amount of the margin borrowing varies
depending on the market price of the Common Stock and other securities. The
total funds used by the Feshbachs and parties related to them to make these
purchases through the date of this Amendment No. 2 were $4,078,243.20.
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SCHEDULE 13D
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CUSIP No. 231264102 Page 5 of 8 Pages
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ITEM 4. PURPOSE OF TRANSACTION
The Feshbachs initially acquired shares of the Common Stock for
investment purposes. Subsequently, the Feshbachs made a determination to form a
group because of a desire to act together to enhance the value of the Common
Stock and improve the general management of the Company. The Feshbachs have
since become satisfied that changes have been instituted by the Company that the
Feshbachs believe will eventually enhance the value of the Common Stock.
Accordingly, the purpose of being a group has been fulfilled, and the Feshbachs
no longer desire to operate as a group. The Feshbachs are now holding their
shares of the Common Stock solely for investment purposes.
The Feshbachs may acquire on the open market from time to time
additional shares of the Common Stock. The Feshbachs may also sell shares of the
Common Stock from time to time. Joseph Feshbach has a seat on the Board of
Directors. Other than in connection with his participation on the Board of
Directors, Joseph Feshbach has no present plans or intentions relating to the
transactions described in paragraphs (a) through (j) of Item 4 of Schedule 13D.
Matthew Feshbach has no present plans or intentions relating to the transactions
described in paragraphs (a) through (j) of Item 4 of Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) The Company's quarterly report on Form 10-Q for the quarter ended
September 30, 2000, filed with the Securities and Exchange Commission ("SEC"),
states that as of November 1, 2000, the Company had issued and outstanding
7,865,860 shares of Common Stock. This number of outstanding shares is used for
purposes of determining the percentage of shares of the Common Stock owned by
the Feshbachs.
Joseph Feshbach owns beneficially 248,000 shares of the Common Stock,
which represents approximately 3.1% of the outstanding Common Stock. Matthew
Feshbach owns beneficially 105,200 shares of the Common Stock, which represents
approximately 1.3% of the outstanding Common Stock.
(b) Joseph Feshbach has the sole power to direct the vote of and to
dispose of 15,500 shares of the Common Stock, and Joseph Feshbach shares the
power to vote and to dispose of 233,000 shares of the Common Stock.
The shares as to which Joseph Feshbach shares these powers are owned by
the Lucinda H. Feshbach Trust, of which his wife (Lucinda H. Feshbach) is the
trustee, his three adult children (Sarah Feshbach, Melissa Feshbach Epstein and
Jessica Feshbach Paolo), and an individual retirement account of his wife. A
business address for each of these persons is the same as stated for Joseph
Feshbach in Item 2 above in this Schedule 13D. The principal occupations of
these persons are: Lucinda H. Feshbach, minister; Sarah Feshbach, church
administrator; Melissa Feshbach Epstein, minister; and Jessica Feshbach Paolo,
minister. During the last five years, none of these persons has been convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors).
Further, during the last five years, none of these persons was a party to a
civil proceeding of a judicial or administrative body of competent jurisdiction
and as a result of such proceeding was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws on finding any violation
with respect to such laws. Each of these persons is a United States citizen.
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SCHEDULE 13D
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CUSIP No. 231264102 Page 6 of 8 Pages
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Matthew Feshbach has the sole power to direct the vote of and to
dispose of 49,100 shares of the Common Stock, and Matthew Feshbach shares the
power to vote and to dispose of 56,100 shares of the Common Stock.
The shares as to which Matthew Feshbach shares these powers are owned
by the individual retirement account of his wife (Kathleen M. Feshbach) and by
the Kathleen M. Feshbach Trust, of which Kathleen Feshbach is the trustee. A
business address for Kathleen Feshbach is the same as stated for Matthew
Feshbach in Item 2 above in this Schedule 13D. The principal occupation of
Kathleen Feshbach is student. During the last five years, Kathleen Feshbach has
not been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors). Further, during the last five years, Kathleen Feshbach
was not a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws on finding
any violation with respect to such laws. Kathleen Feshbach is a United States
citizen.
(c) During the 60 days prior to the date of this filing, the Feshbachs
effected the following transactions in the Common Stock:
On October 24, 2000, the Matthew L. Feshbach Trust #2 sold 75,000
shares at $5.4995 per share. On November 29, 2000, Melissa Feshbach sold 7,500
shares at $5.4307 per share. On December 11, 2000, the Matthew L. Feshbach Trust
#2 sold 50,000 shares at $5.4348 per share. On December 11, 2000, the Kathleen
M. Feshbach Trust sold 25,000 shares at $5.4323 per share. On December 13, 2000,
the Matthew L. Feshbach Trust #2 sold 25,000 shares at $5.4323 per share. On
December 13, 2000, the Kathleen M. Feshbach Trust #2 sold 25,000 shares at
$5.4323 per share. On December 21, 2000, the Lucinda H. Feshbach Trust sold
80,000 shares at $5.5625 per share to reduce margin borrowings.
(d) No person other than those listed above has the right to receive or
the power to direct the receipt of dividends from, or the proceeds from the sale
of, the shares of the Common Stock.
(e) As of December 13, 2000, the Feshbachs, taken together, ceased to
be the beneficial owners of more than five percent of the Common Stock, because
they ceased acting together as a group on that date.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
In February 2000, the Company entered into a Standstill Agreement with
the Feshbachs. Under the Standstill Agreement, the Company agreed to certain
corporate governance provisions and certain changes in Board composition for the
next two years, including fixing the number of directors to be elected at the
2000 and 2001 Annual Meetings of Shareholders at nine and adding in each of the
next two years one new director to replace one incumbent director. In addition,
the Feshbachs agreed that until the expiration of the term of the Standstill
Agreement on February 21, 2002, they would not:
*unless approved by a majority of the Board of Directors (excluding
Joseph Feshbach), acquire, or propose to acquire, directly or indirectly, more
than 300,000 additional shares of the Company's outstanding Common Stock, except
by way of options granted to directors or by way of stock dividends or other
distributions by the Company made available to holders of voting securities
generally;
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SCHEDULE 13D
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CUSIP No. 231264102 Page 7 of 8 Pages
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*form or join any "group" within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934 or deposit any voting securities in a voting
trust, or subject any shares to any similar agreement or arrangement;
*directly or indirectly become a participant in any solicitation of
proxies except in accordance with matters recommended by the Company's Board of
Directors;
*transfer or sell, directly or indirectly, any voting securities owned
beneficially by them, other than (a) in certain open market transactions, (b)
pursuant to any bona fide pledge or hypothecation for the benefit of a bona fide
financial institution, (c) to another person controlled by the Feshbachs or (d)
in connection with an acquisition transaction available to all holders of voting
securities that is recommended by the Board of Directors and is either a tender
offer or requires a shareholder vote;
*solicit, initiate or encourage, directly or indirectly, proposals or
offers to acquire the Company without the consent of a majority of the Board of
Directors, not including Messrs. Joseph Feshbach, Paul S. Auerbach or Daniel
Berce; or
*initiate communications, take any public position on matters
pertaining to the Company or advocate a position not approved by the Board of
Directors, or advocate any position that could have a reasonable possibility of
causing a solicitation of proxies by any person other than the Company's Board
of Directors.
The Standstill Agreement also provides that until its expiration, the
Feshbachs are to cause all shares of the Company beneficially owned by them to
be represented, in person or by proxy, at each shareholder meeting. In addition,
the Feshbachs are to cause such shares to be voted at such meetings either (a)
as affirmatively recommended by the Board of Directors, or (b) if the Board of
Directors has made no affirmative recommendation, in the Feshbachs' sole
discretion. The Feshbachs have also agreed not to call, or join with any other
shareholders for the purpose of calling a special meeting of shareholders.
The Standstill Agreement is attached as Exhibit 3 to this Amendment No.
2. All statements above with respect to the Standstill Agreement are qualified
by reference to the Standstill Agreement.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
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EXHIBIT NUMBER DESCRIPTION
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1 Agreement to File Joint Schedule 13D*
2 Form of Customer Agreement with Bear Stearns
Securities Corp.*
3 Standstill Agreement
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*previously filed
SIGNATURE
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SCHEDULE 13D
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CUSIP No. 231264102 Page 8 of 8 Pages
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After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
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December 22, 2000 /s/ Joseph Feshbach
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Date Signature
Name: Joseph Feshbach
December 22, 2000 /s/ Matthew Feshbach
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Date Signature
Name: Matthew Feshbach
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