Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against Oxford Health Plans
December 8, 1997 08:34 PM
SEATTLE--(BUSINESS WIRE)--Dec. 8, 1997--The following notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. on behalf of its client, who, on December 8, 1997, filed a lawsuit in the United States District Court for the District of Connecticut on behalf of purchasers of the common stock of Oxford Health Plans, Inc. OXHP during the period between November 6, 1996 and October 27, 1997, inclusive.
The complaint charges that Oxford and certain officers and directors of the Company during the relevant time period violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by, among other things, misrepresenting and/or omitting material information about the Company's conversion of its business operations to a new computer operating system which caused and would continue to cause significant delays in generating premium bills. These delays, the complaint alleges, severely impacted the Company's ability to collect past premiums, and negatively impacted revenues and earnings. In turn, the delays created a backlog of processed medical claims which negatively affected the Company's ability to determine medical liabilities and resulted in the Company's establishment of inadequate reserves to cover medical costs.
In addition, the complaint alleges that defendants affirmatively misrepresented that any problems with the upgrade were being resolved and would not materially impact the Company's operations. The complaint also charges that certain defendants sold large amounts of Oxford common stock while the price was artificially inflated and before its substantial decline on October 27, 1997
Plaintiff's counsel in this action -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. -- has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C. and Seattle and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total hundreds of millions of dollars or more.
If you are a member of the Class who purchased Oxford common stock during the period between November 6, 1996 and October 27, 1997, inclusive (the "Class Period"), you may move the Court no later than sixty days from October 28, 1997 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following attorneys: Steven J. Toll at 888/240-1238 or 206/521-0080 (1301 Fifth Avenue, Suite 2905, Seattle 98101); or Andrew N. Friedman at 888/240-0775 or 202/408-4600 (1100 New York Avenue NW, Suite 500 -- West Tower, Washington, D.C. 20005). |
