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Case Status:    SETTLED
On or around 09/13/2005 (Date of order of final judgment)

Filing Date: November 06, 2001

According to the latest docket posted, on September 13, 2005, the Court entered the Final Judgment and Order signed by U.S. District Judge Theodore H. Katz. The action is settled and the case is closed.

By the Notice Of Pendency Of Class Action dated May 10, 2005, Aetna has agreed to pay $5,000,000 (the "Settlement Amount") into an interest-bearing account for the benefit of the Class. The litigation, having commenced in November, 2001, was consolidated into a single case in April, 2002. Lead Plaintiffs filed a Consolidated and Amended Class Action Complaint ("the Complaint") on June 7, 2000. On July 22, 2002, Aetna filed a motion asking the Court to dismiss Lead Plaintiffs' claims. Lead Plaintiffs filed their opposition on September 5, 2002. This motion was fully briefed and oral argument occurred. The motion was still pending at the time of reaching this Settlement.

The original 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 forty percent to below $25.00 per share.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: AET
Company Market: New York SE
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: S.D. New York
DOCKET #: 01-CV-9796
JUDGE: Hon. George B. Daniels
DATE FILED: 11/06/2001
CLASS PERIOD START: 12/13/2000
CLASS PERIOD END: 06/07/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  6. Lovell Stewart Halebian LLP (former New York)
    500 Fifth Avenue, Lovell Stewart Halebian LLP (former New York), NY 10110
    212.608.1900 212.719.4677 · info@lshllp.com
  7. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  8. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  9. The Rosen Law Firm, P.A. P.C. (New York, Former Office)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm, P.A. P.C. (New York, Former Office), NY 10016
    212.686.1060 212.202.3827 · info@rosenlegal.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 01-CV-9796
JUDGE: Hon. George B. Daniels
DATE FILED: 06/07/2002
CLASS PERIOD START: 12/13/2000
CLASS PERIOD END: 06/07/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
  3. Lovell & Stewart LLP (New York)
    500 Fifth Avenue, Lovell & Stewart LLP (New York), NY 10110
    212.608.1900 212.719.4677 · sklovell@aol.com
  4. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  5. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date
No Document Title Filing Date