NEW YORK, Nov. 4, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of Cigna Corp. ("Cigna" or the "Company") (NYSE:CI) securities between May 2, 2001 through October 24, 2002, 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 Cigna's financial results and business prospects. Specifically, the complaint alleges that Cigna continuously touted its seemingly impressive earnings growth and represented that operating income in 2002 was expected to be $1.1 billion. These representation were materially false and misleading because the Company neglected to disclose that Cigna failed to adequately reserve for its reinsurance obligations, particularly for its reinsurance of guaranteed minimum death benefits, ("GMDB"), by hundreds of millions of dollars, if not more. As a result, the price of the Company's securities were artificially inflated throughout the Class Period. On October 24, 2002, however, the Company revealed that it would not meet its third quarter and year 2002 guidance resulting in a share price decline of nearly 42% in a single day, falling from $63.60 per share close on October 24, 2002 to trade as low as $36.81 per share on October 25, 2002.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Cigna securities between May 2, 2001 through October 24, 2002, 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 Cigna securities during the Class Period, you may, not later than December 24, 2002, 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:
ERIC CRUSIUS, ESQ.
ANTHONY VOZZOLO, ESQ.
FARUQI & FARUQI, LLP
320 East 39th Street
New York, NY 10016
Telephone: (877) 247-4292 or (212) 983-9330
e-mail Ecrusius@faruqilaw.com
Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.