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IN RE PACIFICARE HEALTH SYSTEMS INC SECURITIES LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: PHS131439, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>PHS131439, Pacificare, Class Period, Costs, Expenses, Stock, Health, Price, Executives, Officer, Growth, Revenue, Earnings, Medicare, Inflate, Eps, Medical Loss Ratio, Shared-risk, Securities, Properly Record, Membership, Diluted Eps, Medical Care Ratio, Accounting, Healthcare Providers, Federal Securities Laws, Understatement, Individual Defendants, Utilization, Medicare Program, Fhp, Counti, Facts, Lower Overall, Streamline Operations, Forecasts, Prospects, District, Shares, Patterns, Management , ContentID: 120246253

Case Documents
1   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114758
44 pages
PDF
2 1999-11-22 Government Exhibit # 2ND AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 123489
49 pages
PDF
Total Documents: 2 documents , 93 pages
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1 . COMPLAINT

EXTRACTED KEY WORDS
DEFENDANTS
CLASS PERIOD
COSTS
EXPENSES
STOCK
HEALTH
PRICE
EXECUTIVES
OFFICER
GROWTH
REVENUE
EARNINGS
MEDICARE
INFLATE
EPS
MEDICAL LOSS RATIO
SHARED-RISK
SECURITIES
PROPERLY RECORD
MEMBERSHIP
DILUTED EPS
MEDICAL CARE RATIO
ACCOUNTING
HEALTHCARE PROVIDERS
FEDERAL SECURITIES LAWS
UNDERSTATEMENT
INDIVIDUAL DEFENDANTS
UTILIZATION
MEDICARE PROGRAM
 1 MILBERG WEISS BERSHAD
        HYNES & LERACH LLP
 2 WILLIAM S. LERACH (68581)
      DARREN J. ROBBINS (168593)
 3 600 West Broadway, Suite 1800
      San Diego, CA  92101
 4 Telephone:  619/231-1058
      619/231-7423 (fax)
 5 Attorneys for Plaintiff
 6 [Additional counsel appear on signature page.]
 7

 8                     UNITED STATES DISTRICT COURT

 9                    CENTRAL DISTRICT OF CALIFORNIA
10                              SOUTHERN DIVISION

11 BENJAMIN P. DOLE, On Behalf of ) No.
12 Himself and All Others                  )
      Similarly Situated,                  ) CLASS ACTION
13                                         )
                             Plaintiff,    ) COMPLAINT FOR VIOLATION OF
14                                         ) THE FEDERAL SECURITIES LAWS
          vs.                              )
15                                         )
      PACIFICARE HEALTH SYSTEMS,           )
16 INC., ROBERT W. O'LEARY, ALAN           )
      R. HOOPS, RICHARD M. BURDGE,         )
17 SR., DAVID R. CARPENTER, GARY           )
      L. LEARY, WARREN E. PINCKERT         )
18 II, JEFFREY M. FOLICK, JOSEPH           )
      S. KONOWIECKI, MARY C.               )
19 LANGSDORF, HOWARD G. PHANSTIEL )
      and UNIHEALTH FOUNDATION,            )
20                                         )
                             Defendants. )
21                                         ) DEMAND FOR JURY TRIAL

22
23

24

25
26

27

28
SNIPPETS:
  • otherwise acquired PacifiCare Health Systems,
  • the federal securities laws.
  • misstated due to its failure to properly record medical 10 expenses, particularly its
  • 12 PacifiCare's stock, defendants caused the Company to falsely
  • 17 PacifiCare's EPS.
  • 22 in order to inflate its earnings.
  • 24 IBNR) as a percentage of revenue which was much lower than prior
  • 25 to and subsequent to the Class Period,
  • 27 1 IBNR are costs associated with healthcare services that have been incurred during the
  • "reported" medical loss ratio was 85%.
  • 19 shared-risk contracts, under which the amounts of its costs were
  • 21 of member utilization of health services.
  • reimbursed by the government for Medicare services.
  • was reporting were consistent with Generally Accepted Accounting
  • operated to artificially inflate the price of PacifiCare stock
  • Defendant Robert W. O'Leary served as 10 President and Chief Executive Officer of the Company
  • The Individual Defendants, by reason of their
  • The Individual Defendants are each top executives of
  • 22 to "shared-risk" arrangements with healthcare providers.
  • because the "appearance" of growth was so
  • membership growth and favorable premium pricing,"
  • -- Diluted EPS was $1.54 for the quarter,
  • 21 stability in our medical care ratio.
  • 23 Horizons, which is our Medicare program, also can

  • 2 . Government Exhibit # 2ND AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    FHP
    COUNTI
    DEFENDANTS
    PACIFICARE
    FACTS
    LOWER OVERALL
    STREAMLINE OPERATIONS
    FORECASTS
    PROSPECTS
    DISTRICT
    SHARES
    PATTERNS
    MANAGEMENT
    JURYDEMAND
    RELIEF
    PRAYER
    CLASS ACTION ALLEGATIONS
    SCIENTER
    PARTIES
    VENUE
    JURISDICTION
    WAMPLER
    MORIA FAINBERG
    WHATCOTT
    SETH
    WALLS
    KYLE
    TAYLOR
    SOUTH GRAND AVENUE
    
     1  MILBERG  WEISS  BERSHAD
              HYNES  &  LERACH  LLP
     2  B'LAKE  M.  HARPER  (115756)
           LAURA  M.  ANDRACCHIO                       (187773)
     3  600  West  Broadway,                         Suite         1800
           San  Diego,             CA  92101
     4  Telephone:                  619/231-1058                      :-
           619/231-7423               (fax)
     5               -  and  -
           KAREN  T.  ROGERS  (185465)
     6  355  South  Grand  Avenue
           Suite         4170
     7  Los  Angeles,                CA  90071
           Telephone:               213/617-9007
     8  213/617-9185                  (fax)
    
     9  BARRACK,  RODOS  &  BACINE                                                           BERGER  & 
           STEPHEN  R.  BASSER  (121590)                                                     SHERRIE 
    10  MATTHEW  P.  MONTGOMERY  (180196)                                                    JACOB  A. 
           600  West  Broadway,                      Suite         1700                      1622 
    11  San  Diego,                CA  92101                                                
           Telephone:               619/230-0800                                             Telephone:
    12  619/230-1874                    (fax)                                               
    13  Co-Lead             Counsel          for       Plainti        ffs
    14                                               UNITED  STATES  DISTRICT                          
    15                                            CENTRAL  DISTRICT                         OF 
    16                                                             WESTERN  DIVISION
    17
    
    18  WILLIAM             J.  AMADRUGA,  MARK                                       ',  No. 
           FENDRICK,              BRIAN  BARRY,  TERRY
    19  LEWIS,  HERMAN  -GEL,                                  LILLIAN                )  CLASS  ACTION
           KMGEL,            RONALD  ZWEIG,  CHARLES                                  )
    20  ABOD  II,            LILLIAN              BORREGO,  MARY                      )  SECOND 
           ELLEN  BUOYE,  GITA  ENTEZAM,                                              )  VIOLATION     
    21  STEVEN  FRIEDLAND  AND  MYRA                                                  1  EXCHANGE  ACT 
           FRIEDLAND,              JAMES  H.  FRIEDLAND                               1
    22  TRUST,  STEVEN  FRIEDLAND  AND  MYRA  )
           FRIEDLAND              TRUSTEES  UTA,  DATED                               1
    23  10/30/93,                 KANDIS  GREENBERG,
           LINDA  HOWELL,  NANCY  HOWELL,                                             ;
    24  CRAIG  KANER,  DAVID  KAPLAN,
           KRISTEN  KLOOGH,  PETER  MCIVER,                                                          NW
    2s  DIANNE  MILLIKAN,                         PAUL  MIFSUD,
           RAYMOND  NGAI,  HUNG  NGUYEN,  CARRI                                             I d
    26  PALMER,  DON  PARK,  MABNAZ                                                         il
           PAYZARMEHR,  SCOTT  PISCISTTA,                                     LEE
    27  TAYLOR,  KYLE  P.  WALLS,  SETH
           WHATCOTT,  MORIA  FAINBERG  and
    
    SNIPPETS:
  • 355 South Grand Avenue
  • 27 TAYLOR, KYLE P. WALLS, SETH
  • WHATCOTT, MORIA FAINBERG and
  • WAMPLER,
  • JURISDICTION AND VENUE
  • THE PARTIES
  • DEFENDANTS' SCIENTER
  • COUNTI
  • CLASS ACTION ALLEGATIONS
  • PRAYER FOR RELIEF
  • JURYDEMAND
  • management.
  • patterns.
  • 26 shares.
  • this District.
  • 24 prospects.
  • 12 forecasts.
  • statements issued by defendants during the Class Period and why
  • streamline operations, which we expect will result in lower overall
  • 11 because Hoops failed to reveal the facts known to him concerning
  • 12 the operating problems of both PacifiCare and FHP.
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