PHILADELPHIA, April 7, 2008 (PRIME NEWSWIRE) -- The law firm of Spector Roseman & Kodroff, P.C. announces that a class action lawsuit was commenced in the United States District Court for the Western District of Kentucky, on behalf of purchasers of the common stock of Humana, Inc. ("Humana" or the "Company") (NYSE:HUM) from February 4, 2008 through March 11, 2008, inclusive (the "Class Period").
The complaint charges Humana and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company provides various health and supplemental benefit plans for employer groups, government benefit programs, and individuals in the United States.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements concerning the Company's anticipated earnings per share ("EPS") for the first quarter of 2008 and full year 2008. As alleged in the complaint, these statements were materially false misleading because defendants failed to disclose: (i) that the Company was unable to properly calculate the prescription drug costs of its newly acquired members; (ii) that the Company's costs associated with its prescription drug plans had dramatically increased; and (iii) that as a result of the foregoing, defendants' statements concerning the Company's anticipated EPS for the first quarter of 2008 and full year 2008 were lacking in a reasonable basis at all relevant times and were therefore, materially false and misleading.
On March 12, 2008, the Company announced that it would be revising its earnings estimates because of, among other things, increased costs that it was experiencing with the Company's prescription drug plans. Following this announcement, shares of Humana stock fell $6.50 per share, or approximately 13.7%, to close at $40.88 per share. Plaintiff seeks to recover damages on behalf of all purchasers of Humana common stock during the Class Period (the "Class").
If you purchased Humana securities during the Class Period, you may, no later than May 27, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, which 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 Humana 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 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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