Sep. 14, 2009 (Business Wire) -- Attorney Advertising. Stull, Stull & Brody announced today that it has commenced an investigation relating to the 401(k) defined contribution retirement plans of Coventry Health Care, Inc. Retirement Savings Plan (hereinafter “Coventry” or the “Company”) (NYSE: CVH). Among other things, Stull, Stull & Brody is investigating whether fiduciaries of the Coventry 401(k) plan may have violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by failing to disclose the Company’s true operating condition to participants and beneficiaries of the plans (including disclosures relating to (i) that the Company employed under-pricing strategies to create the appearance that its new Medicare Private-Fee-For-Service (“PFFS”) initiative was capable of driving the high growth necessary to offset Coventry’s contracting Commercial business; (ii) that the Company failed to disclose the true risks associated with its under-pricing strategies, including the fact that Coventry was generating new Medicare PFFS membership at the expense of profit margins and profitability; (iii) that the true negative effects of the Company’s under-pricing strategies were masked by improper claims assumptions that materially understated Coventry’s healthcare claim expenses; (iv) that Coventry’s disclosure and internal controls representations, and defendants’ certifications thereon, were materially false and misleading when made; (v) and that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and earnings guidance), by offering Coventry stock as an investment option under the plans when it was not prudent to do so, and/or by allowing an imprudent overconcentration of Company stock in the Company’s 401(k) plans.
If you held Coventry stock in an individual account under any of the Company’s 401(k) plans at any time since January 1, 2007 you may, if you wish, consult with a representative of Stull, Stull & Brody at no cost or obligation. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at http://www.ssbny.com/.
Stull, Stull & Brody has extensive experience in protecting the rights of 401(k) plan participants and beneficiaries and shareholders of public companies. Stull, Stull & Brody is presently representing classes of 401(k) plan participants in many class action cases throughout the country. Stull, Stull & Brody maintains offices in New York and Los Angeles.
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