HARTFORD, Conn., Oct. 26, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Florida on behalf of all persons who purchased the common stock of WellCare Health Plans, Inc. ("WellCare") (NYSE:WCG) between May 8, 2006 and October 24, 2007 (the "Class Period").
The Complaint alleges that WellCare and certain of its officers and directors violated federal securities laws. Specifically, during the Class Period: (i) defendants manipulated WellCare's accounting for revenues and income and failed to report proper expenses; (ii) defendants had materially overstated WellCare's profitability by failing to properly account for the Company's health care expenses and results of operations; (iii) WellCare did not have adequate systems of internal operational or financial controls; and (iv) as a result of the foregoing, it was not true that WellCare's financial statements and reports were prepared in accordance with GAAP and SEC rules. Accordingly, defendants lacked any reasonable basis to claim that WellCare was operating according to plan, or could achieve the guidance endorsed by defendants.
On October 24, 2007, state and federal law-enforcement agents armed with a federal search warrant raided WellCare's Tampa, Florida headquarters. Agents from the Federal Bureau of Investigation, the Health and Human Services Department and the Florida Attorney General's Medicaid Fraud Unit participated in the raid. On this news, the New York Stock Exchange subsequently halted trading of shares in WellCare. The Company's shares fell $7.10, or 5.8%, to $115.17 per share at market close on October 24, 2007. On October 25, 2007, shares resumed trading at approximately $64.00 per share and fell to a close of $42.67.
If you are a member of the class, you may, no later than December 26, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.