WellPoint sued over lowered earnings estimate

March 19, 2008
Two law firms have sued WellPoint Inc., claiming the company and its officers misled investors for weeks before the company lowered its earnings estimates this month.

The lawsuits claim WellPoint officers knew their medical costs were rising and their customer rolls were growing more slowly than predicted, but did not tell investors. After WellPoint disclosed those facts on March 10, its stock fell 28 percent in one day.

The lawsuits, filed on behalf of WellPoint shareholders, are in U.S. District Court in Indianapolis. Both seek class-action status.

One suit was filed by the Philadelphia law firm of Bernard M. Gross. The other was filed by Coughlin Stoia Geller Rudman & Robbins of New York.
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