ATLANTA, Dec. 18, 2002 (PRIMEZONE) -- Chitwood & Harley reminds investors that December 24, 2002 is the deadline by which class members must file papers requesting appointment as a lead plaintiff, if interested in serving in this role, in the securities class action law suit against CIGNA Corp. ("CIGNA" or the "Company") (NYSE:CI). You are a class member if you purchased or otherwise acquired the securities of CIGNA between May 2, 2001 through October 24, 2002, inclusive (the "Class Period"). The lawsuit, previously filed by Chitwood & Harley in the Eastern District of Pennsylvania, alleges that CIGNA and other defendants, including H. Edward Hanway, Chief Executive Officer, President and Chairman of the Board; James G. Stewart, Chief Financial Officer and Executive Vice President; and James A. Sears, Chief Accounting Officer, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market. On November 1, 2002 CIGNA disclosed that the Securities and Exchange Commission ("SEC") had launched an inquiry into the company. A copy of the complaint can be viewed at www.classlaw.com.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may choose to do nothing and remain an absent class member. There are certain legal requirements to serve as a lead plaintiff, which we would be happy to discuss with you.
The complaint alleges that CIGNA filed financial reports with the SEC and issued numerous press releases regarding its performance during the Class Period which indicated that the Company was experiencing strong growth, that its operating income for 2002 was expected to be $1.1 billion and that its liabilities on its discontinued reinsurance operations were not expected to be material to its liquidity. The complaint claims that defendants failed to disclose that CIGNA had been under-reserving for its reinsurance obligations, particularly for its reinsurance of guaranteed minimum death benefits, ("GMDB"), by hundreds of millions of dollars, if not more, and that statements made by the Company were materially false and misleading because CIGNA was experiencing declining demand for its offerings, particularly in its Employee Health Care, Life and Disability segment, and its income guidance for 2002 was lacking in any reasonable basis when made.
On October 24, 2002, the Company revealed that it would not meet its third quarter and year 2002 guidance -- even excluding the recent $720 million and $315 million 2002 guidance -- even excluding the recent $63.60 per share close on stock plummeted by 42%, falling from a $63.60 per share close on October 24, 2002 to trade as low as $36.81 per share on October 25, on extreme heavy trading.
Plaintiff is represented by Chitwood & Harley, a class action law firm that represents victims of securities fraud and corporate mismanagement. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in a $490 million settlement, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.