Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/cno/)
today announced that a class action has been commenced on behalf of an
institutional investor in the United States District Court for the
Southern District of New York on behalf of purchasers of Conseco Inc.
(“Conseco” or the “Company”) (NYSE:CNO) common stock during the period
from August 4, 2005 to March 17, 2008 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of
Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com.
If you are a member of this class, you can view a copy of the complaint
as filed or join this class action online at http://www.csgrr.com/cases/cno/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Conseco and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Conseco, through
its subsidiaries, engages in the development, marketing, and
administration of supplemental health insurance, annuity, individual
life insurance, and other insurance products for senior and
middle-income markets in the United States.
The complaint alleges that, during the Class Period, defendants issued
numerous statements regarding the Company’s financial performance. As
alleged in the complaint, these statements were materially false and
misleading because defendants misrepresented and/or failed to disclose
the following adverse facts, among others: (i) that the Company was
reporting materially inaccurate revenue figures; (ii) that the Company’s
reported financial results were materially misstated and did not present
the true operating performance of the Company; (iii) that the Company’s
shareholders’ equity was materially overstated during the Class Period,
including the overstatement of shareholders’ equity by $20.6 million at
December 31, 2006; and (iv) as a result of the foregoing, defendants
lacked a reasonable basis for their positive statements about the
Company, its corporate governance practices, its prospects and earnings
growth.
On March 17, 2008, the Company disclosed that it did not maintain
effective controls over the accounting and disclosure of insurance
policy benefits and the liabilities for insurance products and that it
would therefore be restating its financial results for the years ended
December 31, 2004 and 2006, along with affected Selected Consolidated
Financial Data for 2003 and 2004, and quarterly financial information
for 2006 and the first three quarters of 2007.
In response to this announcement, shares of the Company’s stock fell
$1.30 per share, or 12.9%, from a close of $10.06 per share on March 14,
2008, the last trading date before the announcement, to close at $8.76
per share, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of
Conseco common stock during the Class Period (the “Class”). The
plaintiff is represented by Coughlin Stoia, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Philadelphia and Atlanta, is active in major litigations pending in
federal and state courts throughout the United States and has taken a
leading role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights violations.
The Coughlin Stoia Web site (http://www.csgrr.com)
has more information about the firm.
Coughlin Stoia Geller Rudman & Robbins LLP
Samuel H. Rudman,
800-449-4900
David A. Rosenfeld
djr@csgrr.com
