PHILADELPHIA, March 19, 2008 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. has commenced a class action lawsuit in the United States District Court, Southern District of Indiana, 08cv0357, on behalf of purchasers of the common stock of WellPoint, Inc.("WellPoint" or the "Company") (NYSE:WLP) between January 23, 2008 and March 10, 2008, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934. The action is pending before the Honorable Sarah Evans Barker.
If you wish to serve as lead plaintiff, you must move the Court no later than May 19, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. 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.
The complaint charges WellPoint and certain of its officers and directors with violations of the Federal Securities Laws. WellPoint operates as a commercial health benefits company in the United States. Defendants made false and misleading statements and failed to disclose material facts concerning WellPoint's medical costs and medical enrollment levels. In addition, based on these false and misleading statements of current fact, defendants misled the market by issuing false and misleading earnings guidance. Additionally, during the class period, defendant Glasscock sold $6.6 million worth of WellPoint stock.
In truth, the Company was experiencing significant increases in its medical costs and adverse reserve developments in 2008 which would require increases to WellPoint's medical cost reserve. WellPoint's membership growth was weighted more towards the less profitable self-funded products and enrollment in fully insured products was down. As a result of these known facts at the beginning of the Class Period, defendants provided earnings guidance which they knew WellPoint would not be able to achieve.
When defendants disclosed the truth to the market on March 10, 2008, the price of WellPoint's common stock dropped 28.3% to close at $47.26, on volume of more than 54 million shares.
Plaintiff seeks to recover damages on behalf of all those who purchased the common stock of WellPoint (NYSE:WLP) between January 23, 2008 and March 10, 2008. The plaintiff is represented by Law Offices Bernard M. Gross P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
Telephone: 866-561-3600 (toll free) or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com