RADNOR, Pa., Oct. 12 /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 Eastern District of Virginia on behalf of all securities purchasers of AMERIGROUP Corporation ("AMERIGROUP" or the "Company") from April 27, 2005 through September 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 info@sbclasslaw.com.
The complaint charges AMERIGROUP and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' Class Period representations regarding AMERIGROUP's financial statements, business, and prospects were materially false and misleading when made. Specifically, the defendants failed to disclose: (1) that defendants lacked adequate internal controls; (2) that medical costs were substantially rising across the board and not just in certain markets; (3) that AMERIGROUP hid the rising medical costs from investors by materially underreporting said costs in an effort to mask a shortfall in earnings; and (3) that the defendants' actions of underreporting medical costs served to materially inflate AMERIGROUP's financial results, in violation of Generally Accepted Accounting Principles ("GAAP").
On September 28, 2005, after the close of the market, AMERIGROUP announced that it expected to report a third quarter 2005 loss of $0.06 to $0.08 per diluted share, as compared to current consensus earnings estimate of $0.48 per diluted share. As a result, the Company would not meet its 2005 annual earnings guidance of $1.73 to $1.78 per diluted share. On news of this, shares of AMERIGROUP, on September 29, 2005, plummeted $14.10 per share, or 41.58 percent, to close at $19.81 per share on unusually heavy trading volume.
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 December 2, 2005 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 info@sbclasslaw.com
Schiffrin & Barroway, LLPCONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., both ofSchiffrin & Barroway, LLP, +1-888-299-7706 or +1-610-667-7706,info@sbclasslaw.com
Web site: http://www.sbclasslaw.com/
