Lasky & Rifkind, Ltd., a law firm with offices in New
York and Chicago, announces that a lawsuit has been filed in the
United States District Court for the Southern District of New York, on
behalf of persons who purchased or otherwise acquired publicly traded
securities of Universal American Financial Corp. ("Universal American"
or the "Company") (NASDAQ:UHCO) between February 16, 2005 and October
28, 2005, inclusive, (the "Class Period"). The lawsuit was filed
against Universal American and certain officers and directors
("Defendants").
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at investorrelations@laskyrifkind.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 23, 2006 to serve as a lead plaintiff for the Class. 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. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of materially false and misleading statements concerning the Company's medical loss ratio, which is a ratio measuring the relationship between the cost of healthcare provided to premium income. Defendants claimed that the profitability of certain businesses was contingent upon the Company's ability to accurately predict and manage costs related to the provision of healthcare services. Defendants further stated that they had reversed a negative trend-line in the medical loss ratio they had been experiencing.
On October 28, 2005, Defendants announced a 22% decline in net income resulting directly from higher medical care costs and expenses. In reaction to this news, Universal American's stock price fell $7.50 per share to close below $15.00 per share. During the Class Period, insiders sold stock for proceeds in excess of $200 million.
If you bought Universal American securities between February 16, 2005 and October 28, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at investorrelations@laskyrifkind.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 23, 2006 to serve as a lead plaintiff for the Class. 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. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of materially false and misleading statements concerning the Company's medical loss ratio, which is a ratio measuring the relationship between the cost of healthcare provided to premium income. Defendants claimed that the profitability of certain businesses was contingent upon the Company's ability to accurately predict and manage costs related to the provision of healthcare services. Defendants further stated that they had reversed a negative trend-line in the medical loss ratio they had been experiencing.
On October 28, 2005, Defendants announced a 22% decline in net income resulting directly from higher medical care costs and expenses. In reaction to this news, Universal American's stock price fell $7.50 per share to close below $15.00 per share. During the Class Period, insiders sold stock for proceeds in excess of $200 million.
If you bought Universal American securities between February 16, 2005 and October 28, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.
© 2005 Business Wire
