Health Insurer Investors Sue Over $800M Sale To WellCare

By Martin O'Sullivan (January 27, 2017, 10:24 PM EST) -- Investors in Universal American Corp. on Friday hit the health insurer with a proposed securities class action in Delaware federal court alleging shortcomings in the proxy statement surrounding the company's roughly $800 million acquisition by Medicare and Medicaid plan provider WellCare Health Plans Inc.

Investor Paul Parshall said that Universal American violated securities law by issuing an incomplete proxy statement in connection with the WellCare deal, which was announced in November. The statement omits information on certain financial projections, potential conflicts of interest by the company's top brass and the background of the deal.

"The proxy statement omits material information with...

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