NEW YORK, Oct. 26, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that a class action lawsuit has been filed against WellCare Health Plans, Inc. ("WellCare" or the "Company") (NYSE:WCG) in the United States District Court for the Middle District of Florida on behalf of shareholders who purchased WellCare securities.
For further information you may call toll free, 1-800-347-1236, or contact counsel by e-mail by writing to rjacobs@jacobsclasslaw.com.
The Complaint alleges that WellCare, and certain of its senior executives, made a series of materially false and misleading statements related to the Company's business and operations in violation of the federal securities laws. The Complaint alleges, among other things, that the Company was not operating according to plan; that the defendants had manipulated WellCare's accounting for revenues and income, and failed to report proper expenses and other material information about the Company; that WellCare's internal controls were deficient; and the Company's financial statements and reports were not prepared in accordance with proper accounting standards.
On October 24, 2007, state and federal law-enforcement agents involved in Medicaid fraud investigations raided WellCare's Tampa, Florida headquarters. WellCare provides managed-care plans for 2.3 million Medicare and Medicaid participants nationwide.
Prior to the news of the raid, WellCare's shares closed at $115.17. As a result of the recent news, WellCare is now trading at approximately $33 per share, a drop of 71 percent. Shareholder value has been decimated.
If you currently hold WellCare shares and expect to continue to hold them, we would like to speak with you. Please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.