Cigna investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Cigna is a health services organization that provides insurance and related products and services in the United States and internationally. The company distributes its products and services through insurance brokers and insurance consultants or directly to employers, unions, and other groups, as well as through the direct response television and the Internet.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Cigna’s appeals and grievances procedures were not in compliance with federal standards; (ii) Cigna’s noncompliance with federal standards posed a serious threat to the health and safety of Medicare beneficiaries; and (iii) as a result of the foregoing, Cigna’s public statements were materially false and misleading at all relevant times.
The Class Period commences on February 27, 2014, when Cigna filed an annual report on Form 10-K with the SEC announcing the company’s financial and operating results for the quarter and year ended December 31, 2013.
According to the complaint, on January 22, 2016, pre-market, filed a Form 8-K with the SEC disclosing that the company was notified by the Centers for Medicare & Medicaid Services (“CMS”) of its intent to impose intermediate sanctions suspending the enrollment of and marketing to new customers of all Cigna Medicare Advantage and Standalone Prescription Drug Plan Contracts. The CMS imposed sanctions due to deficiencies discovered with Cigna’s operations of its Parts C and D appeals and grievances, Part D formulary and benefit administration, and compliance program.
Following this news, Cigna stock fell from $140.13 on Thursday, January 21, 2016 to close at $135.85 on Monday, January 25, 2016, a two-day drop of $4.28.
If you are a member of the class described above, you may no later than April 6, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. 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 Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706