Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of Aetna Inc. ("Aetna" or the "Company") (NYSE: AET) between October 27, 2005 and April 27, 2006, inclusive (the "Class Period").
Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Aetna securities through your Aetna retirement account and have information or would like to learn more about these claims, please contact us.
The Complaint charges Aetna and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that during the second half of 2005 Aetna touted its expanding membership rolls as a primary reason for an increase in operating income.
During the Class Period, defendants misrepresented or failed to disclose the rise in Aetna's medical cost ratio ("MCR"), which is the percentage of dollars a company spends on healthcare, including physician reimbursement, and is the key number for health plans in terms of their level of profitability. Unbeknownst to investors, however, from at least as early as September 2005 defendants had in their possession information that contradicted, or rendered false, statements made by the defendants throughout the Class Period.
On April 27, 2006, the Company shocked the market when it disclosed a rise in its MCR relative to the prior year. This higher MCR coupled with large membership growth meant that the Company was under-pricing its health plans in order to speed up enrollment. This fact, which the defendants knew by September 2005, was conspicuously absent from defendants' public disclosures between October 27, 2005 and April 27, 2006. From April 26, 2006 to April 27, 2006, Aetna's shares fell from $46.43 per share to $37.00 per share, a decline of $9.43 per share, or more than 20 percent, representing a loss in market capitalization of $5.4 billion.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Aetna securities during the Class Period, which is between October 27, 2005 and April 26, 2007, inclusive. If you purchased or otherwise acquired Aetna securities during the Class Period, and either lost money on the transactions or continue to hold the securities, you may wish to serve as a lead plaintiff. If you purchased Aetna securities during the Class Period, you may request that the Court appoint you as lead plaintiff by no later than December 24, 2007.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the proposed lead plaintiff's claims are typical of the claims of the other class members, and that the proposed lead plaintiff will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.
