Case Page

 

Case Status:    DISMISSED    
On or around 09/23/2002 (Other)

Filing Date: November 21, 2000

According to the Company’s FORM 10-Q For the Quarterly Period Ended September 30, 2002, the plaintiffs filed an appeal from the dismissal order and subsequently voluntarily dismissed their appeal, which ended the case.

As previously reported by the Company’s FORM 10-Q For the Quarterly Period Ended June 30, 2002, the complaint was consolidated with other subsequent complaints into a single proceeding. The complaints relate to the period between October 27, 1999 and October 10, 2000 and primarily allege that we made false projections about the Company’s financial performance in 2000. The complaints seek an unspecified amount of damages plus attorneys’ fees. A consolidated class action complaint was filed on April 23, 2001. On April 18, 2002, the court dismissed the Russ case against the Company with prejudice. The plaintiffs filed an appeal from the dismissal order on May 16, 2002.

The original complaint charges PacifiCare and certain of its officers, directors and one of its largest shareholders with violations of the Securities Exchange Act of 1934. The complaint alleges that PacifiCare's interim results were false and materially misstated due to its failure to properly record medical expenses, particularly its under-accrual of incurred but not reported costs ("IBNR"). In order to inflate the price of PacifiCare's stock, defendants caused the Company to falsely report its results for Q3 1999, Q4 1999, Q1 2000 and Q2 2000 by misstating its results through its deliberate under-accrual of medical expenses and its reserves for doubtful accounts receivable, all of which resulted in artificially inflating PacifiCare's earnings per share ("EPS"). The complaint further alleges that defendants misrepresented that the revenues PacifiCare was reporting were consistent with Generally Accepted Accounting Principles ("GAAP"), which, together with defendants' false representations that PacifiCare would post Q3 EPS of $1.90, operated to artificially inflate the price of PacifiCare stock to a Class Period high of $72-5/16 on June 16, 2000. While PacifiCare's shares were inflated, defendants sold approximately $50,000,000 worth of PacifiCare stock. On October 10, 2000, PacifiCare revealed that it was in fact suffering a huge decline in revenues, was not posting EPS growth as earlier represented, and contrary to defendants' repeated assurances, PacifiCare was forced to reveal the problems it had been experiencing during the Class Period in attempting to grow its business. This announcement caused its stock price to drop to as low as $14-5/8 (or over $18 per share) on record volume of 5.6 million shares on October 11, 2000, causing tens of millions of dollars in damages to members of the Class.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Accident & Health)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PHSY
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 00-CV-1147
JUDGE: Hon. David O. Carter
DATE FILED: 11/21/2000
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 10/10/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  3. Olsen Law Firm
    2121 K Street, N.W. Suite 800, Olsen Law Firm, DC 20037
    703.351.5199 ·
  4. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
  5. Weiss & Yourman (Los Angeles, CA)
    10940 Wilshire Blvd - 24th Floor, Weiss & Yourman (Los Angeles, CA), CA 90024
    310.208.2800 310.209.2348 · info@wyca.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 00-CV-1147
JUDGE: Hon. David O. Carter
DATE FILED: 12/03/2001
CLASS PERIOD START: 10/27/1999
CLASS PERIOD END: 10/10/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  3. Weiss & Yourman (Los Angeles, CA)
    10940 Wilshire Blvd - 24th Floor, Weiss & Yourman (Los Angeles, CA), CA 90024
    310.208.2800 310.209.2348 · info@wyca.com
No Document Title Filing Date
No Document Title Filing Date