NEW YORK, Oct. 25, 2005 (PRIMEZONE) -- Faruqi & Faruqi, LLP: Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of Virginia on behalf of all purchasers of Amerigroup Corporation ("Amerigroup" or the "Company") (NYSE:AGP) securities between April 27, 2005 and September 28, 2005, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Amerigroup's financial results and business prospects. Specifically, the complaint alleges that Amerigroup failed to account for medical costs, incurred but not reported, in the first and second quarters of 2005. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, allowing certain Company insiders to sell 170,712 shares of their Amerigroup stock for proceeds of $6.1 million. On September 28, 2005, however, the Company disclosed that it expected to report a third quarter 2005 loss of $0.06 to $0.08 per diluted share, as compared to the then-current consensus earnings estimate of $0.48 per diluted share and that, as a result, the Company would not meet its 2005 annual earnings guidance. On this news, Amerigroup's stock fell $14.70 per share from $33.91 per share to $19.81 per share on extremely heavy volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Amerigroup securities between April 27, 2005 and September 28, 2005, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Amerigroup securities during the Class Period, you may, not later than December 2, 2005, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Anthony Vozzolo, Esq. Beth A. Keller, Esq. Faruqi & Faruqi, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com Bkeller@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca