PHILADELPHIA, March 19, 2008 (PRIME NEWSWIRE) -- The law firm of Spector Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of Indiana, on behalf of purchasers of the common stock of WellPoint, Inc. ("WellPoint" or the "Company") (NYSE:WLP) between January 23, 2008 through March 10, 2008, inclusive (the "Class Period").
The Complaint charges WellPoint and certain of its officers and directors ("Defendants") with violations of the Federal Securities Laws. WellPoint operates as a commercial health benefits company in the United States. The Complaint alleges that Defendants made false and misleading statements including failing to disclose material facts concerning WellPoint's medical costs and medical enrollment levels. In this regard, Defendants misled the market by, inter alia, issuing false and misleading earnings guidance. Additionally, during the class period, defendant Glasscock sold $6.6 million worth of his WellPoint stock.
In truth, the Company was experiencing significant increases in its medical costs and adverse reserve developments in 2008 which would require increases to WellPoint's medical cost reserve. Moreover, WellPoint's membership growth was weighted more towards the less profitable self-funded products and enrollment in fully insured products was down. As a result of these known facts at the beginning of the Class Period, defendants provided earnings guidance which they knew the Company would not be able to achieve. When defendants disclosed the truth on March 10, 2008, the price of WellPoint's common stock dropped 28.3% to close at $47.26, on volume of more than 54 million shares.
If you purchased WellPoint securities during the Class Period, you may, no later than May 19, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in WellPoint securities during the Class Period, please contact Spector Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time. If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or David Felderman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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