LITTLE ROCK, Ark., Dec. 19, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Aetna, Inc. ("Aetna" or the "Company") (NYSE:AET) common stock during the period between December 13, 2000 and June 7, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/aetna.pdf.
The complaint charges Aetna and certain of its officers and directors with issuing a series of material misrepresentations to the market before and during the Class Period, thereby artificially inflating the price of Aetna common stock. Specifically, the complaint alleges that Aetna issued statements concerning, among other things, the ability of Aetna to control and monitor its costs and obligations in light of the Company's expected and actual sales. Defendants knew that Aetna's management systems, procedures and controls for monitoring such costs were lacking, but they made positive statements about Aetna's management, controls, and abilities to control costs while concealing the defective management systems.
Between April 10, 2001 and May 8, 2001, Aetna surprised the market by announcing higher-than-anticipated medical costs during the fourth quarter of 2000 and the first quarter of 2001, faulty record-keeping, which caused the payment of millions of dollars in medical claims for former clients, and the absence of necessary management control systems required for management to know Aetna's obligations and proper medical costs. Finally, on June 7, 2001, it was revealed that the cause of much of the Company's financial woes was that: "Poor record-keeping has resulted in ... paying millions of dollars in medical claims for people whose benefits have expired." During the Class Period, the value of Aetna shares had been artificially inflated to almost $43.00 per share, but, as a result of these disclosures, Aetna's stock price plunged in excess of 40 percent to below $25.00 per share.
If you bought Aetna common stock between December 13, 2000 and June 7, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 7, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca