WebMD Shareholders Sue Board Over Rosy Forecasts

Law360, New York (September 1, 2011, 1:14 PM EDT) -- Shareholders of WebMD Health Corp. on Tuesday filed a derivative complaint in New York state court alleging the health information provider’s directors profited while misleading the public about the company’s well-being.

The plaintiffs claim WebMD CEO Wayne Gattinella and nine other board members are liable for breach of fiduciary duty, mismanagement and unjust enrichment after they allegedly hid detrimental developments from investors and caused the company to issue upbeat forecasts, ultimately harming WebMD when the truth emerged.

“The company’s board ... had access to adverse information...
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