RADNOR, Pa., April 22 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Indiana on behalf of all purchasers of securities of WellPoint, Inc. (NYSE: WLP) ("WellPoint" or the "Company") from January 23, 2008 through March 10, 2008, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges WellPoint and certain of its officers and directors with violations of the Securities Exchange Act of 1934. WellPoint is the largest health benefits company in terms of commercial membership in the United States. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's medical costs were rising drastically, while at the same time the Company's reserves for medical costs were understated; (2) that the Company's growth in enrollment was in the less profitable sectors, such as self-funded members and products, and that the Company was not achieving sufficient new enrollment of Fully Insured Members; (3) that the Company's geographic diversity was not able to neutralize the adverse economic factors affecting the Company; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On March 10, 2008, the Company shocked investors when it reduced its full year 2008 growth guidance from 15.3% to between 4% and 8% and stated that this would only occur if net realized gains were about $0.06 per share. Additionally, the Company decreased its first quarter 2008 guidance from $1.44 per share to between $1.16 and $1.26 per share, assuming net realized investment gain of $0.06 per share. The Company admitted that it had incurred higher than expected medical costs and lower than expected Fully Insured enrollment. The Company also blamed is troubles on a changing economic environment.
Upon the release of this news, the Company's shares declined $18.66 per share, or 28.31 percent, to close on March 11, 2008 at $47.26 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com
If you are a member of the class described above, you may, not later
than May 19, 2008, move the Court to serve as lead plaintiff of the class,
if you so choose. A lead plaintiff is a representative party that acts on
behalf of other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the class
member will adequately represent the class. Your ability to share in any
recovery is not, however, affected by the decision whether or not to serve
as a lead plaintiff. Any member of the purported class may move the court
to serve as lead plaintiff through counsel of their choice, or may choose
to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
|SOURCE Schiffrin Barroway Topaz & Kessler, LLP|
Copyright©2008 PR Newswire.
All rights reserved