Item 8.01 Other Events

On October 27, 2009, Alliance HealthCard, Inc. finalized an agreement with the Peter W. Nauert Revocable Trust in which we paid $500,000 as part of a transaction that settled the litigation with States General Life Insurance Company (The State of Texas v. States General Life Insurance Company, Cause No. GV-500484, 126th District Court, Travis County, Texas) and by which, as part of and a condition of the settlement, we repurchased 1,856,401 shares of our stock from the Peter W. Nauert Revocable Trust. Alliance HealthCard's subsidiary, Access Plans USA, Inc., and a number of Access Plans' subsidiaries, had been named as defendants in this action primarily as successors-in-interest to Insurance Capital Management USA, Inc., a company that was merged with and into Access Plans USA, Inc. prior to our acquisition of Access Plans USA. Alliance HealthCard and all of its subsidiaries involved have received full releases in this action and the matter has been dismissed. Alliance HealthCard and its subsidiaries have denied any liability regarding the claims of the Plaintiff and admitted no liability or fault in the settlement. The repurchase amount paid for the shares was included in the $500,000 settlement payment.