AmeriGroup Faces Class Action Suit Over Misleading Earnings Statements

Law360, New York (October 4, 2005, 12:00 AM EDT) -- Managed healthcare company AmeriGroup Corporation is facing a class-action lawsuit from purchasers of its common stock for allegedly withholding damaging financial results during a five-month period to mislead investors.

The plaintiffs, who purchased the stock between April 27 and September 28, sued the company for securities violations in U.S. District Court for the Eastern District of Virginia. The suit accuses AmeriGroup and several of its executives of hiding quarterly losses from the period.

Investors say Virginia-based AmeriGroup intentionally failed to account for at least $23 million...
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