8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 10, 2003

DYNACQ INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

NEVADA

(State or other jurisdiction of incorporation)

000-20554	76-0375477
(Commission File Number)	(I.R.S. Employer Identification No.)

10304 Interstate 10 East, Suite 369, Houston, Texas 77029

(Address of principal executive offices, including zip code)

(713) 673-6432

(Registrant’s telephone number, including area code)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c)     Exhibits. The following are filed as Exhibits to this Report:

99.1     Dynacq International, Inc. Press Release dated November 10, 2003.

Item 9. Regulation FD Disclosure.

On November 10, 2003, Dynacq International, Inc. issued a press release regarding the settlement of a shareholder derivative suit, the text of which is attached as Exhibit 99.1.

Limitation on Incorporation by Reference: In accordance with general instruction B.2 of Form 8-K, the information in this report is furnished under Item 9 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DYNACQ INTERNATIONAL, INC.
By:	/S/ PHILIP S. CHAN
	Philip S. Chan, Chief Financial Officer

DATE: November 13, 2003

INDEX OF EXHIBITS

Exhibit Number	Exhibit Description
99.1	Press Release dated November 10, 2003

EX-99.1

Exhibit 99.1

Court Approves Dynacq Derivative Settlement

HOUSTON—(BUSINESS WIRE)—November 10, 2003—Dynacq International Inc. (Nasdaq/NM:DYII) today announced that the Judge in Brill v. Chan et al., (2002-07135 in the 295^th Judicial District Court of Harris County, Texas), a shareholder derivative case, has approved the proposed settlement of the case.

A Stipulation of Settlement was executed by both parties and filed with the Court on September 11, 2003. The final Settlement, as approved by the Court today, provides, among other things, that (1) the suit will be dismissed and (2) defendants will pay the legal fees and expenses of plaintiffs, which the Court set at $500,000. Plaintiffs’ counsel has offered to accept such payment in Dynacq Common Stock or in cash. Among the terms of the Settlement, it is stipulated that, as a result of the prosecution of the lawsuit and/or the work of the Special Litigation Committee of the Board of Directors of Dynacq, Dynacq has implemented and/or has agreed to implement certain procedures relating to its Audit Committee and its accounting for uncollectible accounts and contractual allowances. The Settlement does not require any change in previously reported financial statements.

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More detailed information about factors that may cause actual results to materially differ is contained in the Company’s filings with the Securities and Exchange Commission. The words “looking forward,” “believe,” “expect,” “likely,” “will be,” “bright future,” “succeed,” “continue,” “prosper and grow” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that such statements were made. The Company undertakes no obligation to update any forward-looking statements contained in this press release.

Source: Dynacq International, Inc.