WellCare Securities Action Survives Bid To Toss

Law360, New York (October 1, 2009, 12:59 PM EDT) -- A federal judge has rejected WellCare Health Plans Inc.'s bid to throw out a putative class action securities complaint that accused the managed health care company of misappropriating tens of millions of dollars in Medicaid funds to inflate its reported income and stock price.

Judge Virginia Covington of the U.S. District Court for the Middle District of Florida on Monday denied the joint motion to dismiss filed by the company, former WellCare CEO Todd Fahra and ex-Chief Financial Officer Paul Behrens.

The court also denied another...
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