RADNOR, Pa., Dec. 7 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of Universal American Financial Corp. (NASDAQ:UHCO) ("Universal American" or the "Company") between February 16, 2005 and October 28, 2005, inclusive (the "Class Period").
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The complaint charges Universal American, Richard A. Barasch, Robert A. Waegelein, and Gary W. Bryant with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked adequate internal controls; (2) that Company did not disclose an increase in the medical loss ratio, or higher expenses relative to premium income; (3) that the Company's under-reporting of medical-loss ratio was in violation of Generally Accepted Accounting Principles ("GAAP"); and (4) that as a result of the foregoing the Company was growing less profitable, and Defendants' statements with respect to the Company's future guidance and operations lacked in any reasonable basis.
On October 28, 2005, the Company announced that it experienced a 22% year- over-year decline in net income resulting from higher medical care costs and expenses. On this news, shares of Universal American fell $8.32 per share, or 36.99 percent, to close, on October 28, 2005, at $14.17 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than January 23, 2006 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Schiffrin & Barroway, LLP: Darren J. Check, Esq. or Richard A.
Maniskas, Esq., +1-888-299-7706, +1-610-667-7706 or Web site: http://www.sbclasslaw.com/
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