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news.Alleges that defendants made numerous positive statements regarding the company's financial condition, business and prospects and failed to disclose the adverse facts
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Coughlin Stoia Geller Rudman & Robbins (Coughlin Stoia) has filed a class action lawsuit on behalf of an institutional investor in the US District Court for the District of Maryland on behalf of purchasers of the common stock of Coventry Health Care (Coventry)between February 9, 2007 and October 22, 2008. The lawsuit seeks to pursue remedies under the Securities Exchange Act of 1934.
Reportedly, the complaint charge Coventry and certain of its executives with violations of the Exchange Act. It alleges that throughout the Class Period, defendants made numerous positive statements regarding the company’s financial condition, business and prospects.
Additionally, the complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the adverse facts.
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%.
The plaintiff seeks to recover damages on behalf of all purchasers of Coventry common stock during the Class Period.