According to the docket dated September 3, 2002, on November 7, 2000, the Court entered the Memorandum, Opinion, and Order of U.S. District Judge Charles R. Simpson III granting the defendants’ motion to dismiss the action with prejudice and stating that the plaintiffs did not allege sufficient facts to state a claim upon which relief could be granted. The plaintiff soon after filed a Notice of Appeal, and on August 23, 2002, the Court entered the Mandate from the Sixth Circuit Court of Appeals affirming the decision of the District Court.
The complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about Humana's results of operations and financial condition. The complaint alleges that defendants issued false and misleading press releases and financial statements during the Class Period. In particular, plaintiff alleges that defendants failed to disclose, among other things, the impact of known and materially adverse advents concerning the renegotiation of a major contract and significantly increased medical costs. As a result of defendants' false and misleading statements and material omissions, the price of Humana's stock was artificially inflated during the Class Period.