According to a press release dated September 03, 2009, The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company's financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the following adverse facts, among others: (i) that the Company employed under-pricing strategies to create the appearance that its new Medicare Private-Fee-For-Service (“PFFS”) initiative was capable of driving the high growth necessary to offset Coventry’s contracting Commercial business; (ii) that the Company failed to disclose the true risks associated with its under-pricing strategies, including the fact that Coventry was generating new Medicare PFFS membership at the expense of profit margins and profitability; (iii) that the true negative effects of the Company’s under-pricing strategies were masked by improper claims assumptions that materially understated Coventry’s healthcare claim expenses; (iv) that Coventry’s disclosure and internal controls representations, and defendants’ certifications thereon, were materially false and misleading when made; (v) and that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and earnings guidance during the Class Period.
On October 21, 2008, Coventry issued a press release announcing its financial results for its third quarter of 2008, the period ended September 30, 2008. In response to this announcement, the price of Coventry common stock declined from $28.49 per share to $13.93 per share, or more than 51%, on very heavy trading volume.
On April 06, 2010, Order Denying As Moot Amended Motion of the County of York Employees Retirement Plan for Appointment as Lead Plaintiff and for Approval of Selection of Lead and Liaison Counsel; Denying As Moot Motion of the Massachusetts Public Pension Funds for Appointment as Lead Plaintiff and Approval of Selection of Lead Counsel; and Granting Coventry Institutional Investor Group's Motion for Appointment as Lead Plaintiff and Approval of Selection of Lead and Liaison Counsel was issued by the Court.
On May 28, 2010, a Consolidated Class Action Complaint For Violations Of The Federal Securities Laws And Jury Demand was filed by the lead plaintiffs against the defendants.
On March 30, 2011, the Court issued an Order granting -in-part and denying-in-part the Defendant's Motion to Dismiss. Among other orders, the Court granted the motion as to three individual defendants, but denied the motion as to the Defendant Company and one individual Defendant.
On August 30, 2011, the Court denied the Plaintiff's Motion for Reconsideration of its March 30, 2011, order regarding the Defendant's Motion to Dismiss.
On August 20, 2012, the Court issued an Order denying as moot Plaintiff's Motion for Class Certification.
On May 20, 2013, the parties entered into a Settlement Agreement. This Settlement was preliminarily approved by the Court on July 15. On October 29th, the Court issued an Order awarding attorneys' fees and expenses. This was immediately followed by a Final Judgment and Order of Dismissal with Prejudice.