Suit Alleges WellPoint Defrauded Stockholders

Law360, New York (April 23, 2008, 12:00 AM EDT) -- WellPoint, Inc. is facing a shareholder class action that accuses the company and its executives of misleading investors, whose stock plunged once the company revealed its true financial condition.

The complaint, filed Tuesday in the U.S. District Court for the Southern District of Indiana, alleges that between Jan. 23 and March 10, 2008, WellPoint defrauded investors by withholding adverse facts about the company's financial status, business relationships and prospects.

The suit charges WellPoint Chief Executive Officer Angela F. Braly, Chief Financial Officer Wayne DeVeydt and board...
To view the full article, register now.