Judge Affirms Decision To Allow Coventry Fraud Action

Law360, New York (August 31, 2011, 2:16 PM EDT) -- A Maryland federal judge on Tuesday refused to alter a decision letting Coventry Health Care Inc. shareholders proceed with a putative class action alleging the company deceived investors regarding severe business setbacks.

U.S. District Judge Alexander Williams Jr. stood by his March determination that the plaintiffs’ adequately alleged that two disclosures by the defendants were materially misleading. In that ruling, the court jettisoned 58 other alleged misstatements, finding scant evidence that Coventry and its brass knew the rosy pronouncements were false.

Coventry sought reconsideration in April,...
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