Universal American Financial Corp. - UHCO in Risk of Class Action Lawsuit
A lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who acquired the publicly traded securities of Universal American Financial Corp (Nasdaq:UHCO) (”Universal American” or the “Company”) between February 16, 2005 and October 28, 2005, inclusive (the “Class Period”) which also included all those who purchased in the secondary offering on or around June 16, 2005 by the law firm of Schatz & Nobel, P.C.
Defendants are alleged that they violated federal securities laws by issuing a series of materially false statements concerning the Company’s medical loss ratio which is an expression of the relation of the cost of health care provided to premium income.
On October 28, 2005, defendants announced a 22% year-over-year decline in net income resulting from higher medical care costs and expenses. On this news, the Company’s share price dropped $7.50 to close at below $15.00 per share. During the Class Period, the Company and Company insiders sold Universal American shares for proceeds in excess of $200 million.
If you are a member of the class, you may, no later than January 23, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation.
Filed under Class Action, General Law
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