This is a securities class action lawsuit against Humana and certain of its officers and directors.
Humana provides various health and supplemental benefit plans for employer groups, government benefit programs, and individuals in the United States.
This securities class action alleges that Humana issued materially false and misleading statements concerning Humana's anticipated earnings per share ("EPS") for the first quarter of 2008 and full year 2008. As alleged in the complaint, these statements were materially false misleading because defendants failed to disclose:
(i) that Humana was unable to properly calculate the prescription drug costs of its newly acquired members;
(ii) that Humana's costs associated with its prescription drug plans had dramatically increased; and
(iii) that as a result of the foregoing, defendants' statements concerning Humana's anticipated EPS for the first quarter of 2008 and full year 2008 were lacking in a reasonable basis at all relevant times and were therefore materially false and misleading.
On March 12, 2008, Humana announced that it would be revising its earnings estimates because of, among other things, increased costs that it was experiencing with Humana's prescription drug plans. Following this announcement, shares of Humana stock fell $6.50 per share, or approximately 13.7%, to close at $40.88 per share.
Name (Stock Symbol)
Humana Inc. (HUM)
Humana Inc. provides various health and supplemental benefit plans for employer groups, government benefit programs, and individuals in the United States
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.