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IN RE PHYSICIAN CORPORATION OF AMERICA SECURITIES LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: PCOA100071, CourtName: CLASS ACTION CASES, State: FL Florida, UniqueCaseRef: LCD>PCOA100071, Pca, Insurance, Common Stock, Compensation, Fbe, Loss, Deficit, Liabilities, Exchange, Fbm, Funds, Florida, Class Action, Statutory, Class Period, Reinsurance, Consent Order, Misleading, Subsidiaries, Complaint, Merger Agreement, Materially False, Material Facts, Liability, Commission, Representation, Tpa, Physician Corporation, Gilbert, Alabama, Health, Revenues, Jay, America, Medhat Reiser, Recurrinq, Twice, Gain, Rior, Comparative Basis, Combined Company, Health Partners, Alabama Hmos , ContentID: 120249903

Case Documents
1 1998-06-01 CONSOLIDATED AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 123511
56 pages
PDF
2 1997-11-19 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 123510
31 pages
PDF
Total Documents: 2 documents , 87 pages
Price: $ 24.95


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1 . CONSOLIDATED AMENDED COMPLAINT

EXTRACTED KEY WORDS
INSURANCE
COMMON STOCK
DEFENDANTS
COMPENSATION
FBE
DEFICIT
LIABILITIES
LOSS
BUSINESS
EXCHANGE
FBM
FUNDS
FLORIDA
CLASS ACTION
PLAINTIFFS
STATUTORY
REINSURANCE
CONSENT ORDER
MISLEADING
SUBSIDIARIES
COMPLAINT
MERGER AGREEMENT
CLASS PERIOD
MATERIALLY FALSE
MATERIAL FACTS
LIABILITY
COMMISSION
REPRESENTATION
TPA
                          t                                               t

                                UNITED  STATES DISTRICT  COURT
                        FOR THE SOUTHERN  DISTRICT  OF FLOWA
                                         MIAMI  DIVISION
                                                                                     CAR OS JUEPW
                                                                                C!-:gK,  t  SDC /
                                                1
IN  RE PNYSICIAN  c0RP0RATI0?4  OF  )                        MASTER  FILE  NO. 97-3678~CIV
AMERICA  SECURITIES  LITIGATION                 >            MIDDLEBROOKS
                                                >
                                               )             JURY  TRIAL  DEMANDED



               Plaint&,  for  their complaint, allege on information  BIXI belief,  the  following:


                1.     Plaintiffs  bring this action as a class action, on behalf  of a class

of  the  cormnon  stock of  Physician  Corporation  of  America,  Enc. ("XA"  or  the  "Company'"},

mxverdamages  arising  hndefendanti         violations  of the federal securities laws.  This class

is brought  OIJ behaf  of  a class ofti  purcb~~~  of PCA common  stock during  the mod  b&n&g

March  3 1, 19% through  and  including  March  3 1, 1997, except Thor. persons as set forth  in 


                        Plaintiffs'  allegations are lxued upon the investigation  oftheir 

included, among other things, a review  of PCA's filings with the Sea&es  and Exchange Commission


ofInsurance  (WOI"),thecompltitS       filed in(i)&ician        Co4&krationv. SierraHrall;b 

Case No 974671  CJV-HIGHSMITH,  Soutkn  District ofFloridaMiami  Division  c'w  Av.  Sim$)

and (ii)  Sierra Health  Stices.  1~.  et al. v. Physician Co~ti~ntiAn~rkw              (Court  of 

of  the  State of  Delaware,  New  Castle County,  C.A. No.  1562Wc)  ra               v.  PC%"); 

Property & Casualty Insurance  Company's  Response to Order to Show Cause &We  ofFlorida  v.



                                                                          !


SNIPPETS:
  • Plaintiffs bring this action as a class action, on behalf of a class ofpurchasers
  • included, among other things, a review of PCA's filings with the Sea&es and Exchange
  • Property & Casualty Insurance Company's Response to Order to Show Cause &We ofFlorida v.
  • PCA hQD+X"@
  • casualty insurers governing the W&W's compensation policies administered and unhwritten by
  • worker's compemation business of FBE, a self-inwed fund, for which PCA P&C was financially
  • touted the success of PCA Solutions' TPA business while failing to di3chme the serio1.15
  • self insured funds were materially underreserved when PCA P&C acquired them.
  • PCA announced that it had reached a de6nitive merger agreement with Sierra on
  • Contrary ta the positive statements of the defendants,
  • Aa result ofdefendants' materially False and misleading statements,
  • of PCA common stock was artificially tiflatd during the Class Period.
  • Circuit Court of the Second Judicial Circuit, Leon Countyq Florida, compelling PCA to show
  • In connection with the acts and course of conduct alleged in this Complaint,
  • by offtAng excess of loss r4zbmme coverage in the worker's compensation mar&. Self-funded
  • tiether the defendants acted knowingly or recklessly in omibting to state andfor
  • to renew all FBE & FBM policies that would expire December 3 1,19!X, and ali policies expiring
  • With regard to liabilities of FBE, PCA P&C proposed to issue an aggregate stop loss reinsumnce
  • loss reinsurance policy was also required to obtain D01 alyeemenl that the members of the
  • C?n the business which it wrote, prior tothe acquisition of FEE and FBM,
  • Consent Order, PCA P&C did not report FBE's fkzancial condition on its financial statements
  • FEE, which had inadequate statutory surplus, defendants repeatedly rppresented that the
  • million deficit for FBE as of the year ended December 3 1,1995.
  • learning of FEW s $5 1.1 million deficit, defendants were required to record the $5 1.1
  • Tie Company's HMO subsidiaries, PCA P&C and PCAQGns~
  • Chicago Report re:itera.ted PCA's representation that the Company was poised for a turnaround

  • 2 . COMPLAINT

    EXTRACTED KEY WORDS
    CLASS PERIOD
    DEFENDANTS
    PHYSICIAN CORPORATION
    GILBERT
    ALABAMA
    HEALTH
    REVENUES
    MEMBERS
    JAY
    AMERICA
    MEDHAT REISER
    RECURRINQ
    TWICE
    DEFICIT
    GAIN
    RIOR
    COMPARATIVE BASIS
    COMBINED COMPANY
    HEALTH PARTNERS
    ALABAMA HMOS
    RECORD HEALTH PREMIUM
    SEVERE RESERVE SHORTFALL
    FUNDE
    EMPHASIS
    CASTLE COUNTY
    DELAWARE
    CHANCERY
    COURT
    HIT RECORD LEVELS
    
    I  e  1146  '97  17:19  ID:RtB?T  C GILBERT,  PFI  FRx:305+9-1612
    
                                                           UNITED  STATES  DISTRICT                    
                                                           SOUTHERN  DISTRXCT                    0
                                                                          NIAMI  DIVISI
    
                 MEDHAT  REISER,
                                                                Plaintiff,
                                        -against-
                 PHYSICIAN  CORPORATION  OF  AMERICA,
                 INC.,         E.  STANLEY  KARDATZKE,  PE!FER                                         
      I-.,
    
      :
                 E.  KILISSANLY,                    CLIFFORD  w.
                 DONNELLY,  and  JAY  H.  GROBOWSKY,                                                   
      .
                                                                                                       
                                                                Defendants.                /
    
    
                                                                   SUMMARY OB  TEE  ACTIOq
                             1..        Plaintiff           brings             this  action           
                 of  a  class  af  purchasers  of  the  securities                                     
                 of  America,                    Inc.      (WPCAN  or  the  HCompanyl'),               
                 arising             from  defendants  '  violations                       of  the 
    ;.
                 This  class  action  is  brought  on  behalf,of                                       
                 of  PCA  common  stock  between                                  May  6,  1996  and 
                 "Class  Period").
                           2.           Plaintiff               has  alleged             the          
                 investigation                    of  their          counsel,          which          
                 SEC  filings,                   securities            analyst         reports,        
                 complaints               filed           in  (i)  PhYsician                   
                 Services,             Inc.,          Case  No  9700671CIV-HIGHSMITH,                  
      of
                 Florida             Miami  Division,                 and  (ii)         Sierra  Health 
      et
                al.  v.  Physician&rporation                                      of  America,         
                State           of  Udaware,                     New  Castle            County,        
     and
    
    
    
                                                                                                       
    
          --  1143  '97  17:19                    ID:RERT  C GILBERT,  PA                              
                                                             >..                                       
                   3.
    
    SNIPPETS:
  • I e 1146 '97 17:19 ID:RtB?T C GILBERT,
  • MEDHAT REISER,
  • PHYSICIAN CORPORATION OF AMERICA,
  • March 31, 1997, the last day of the Class Period, 'when the full
  • Defendant Jay M. Grobcwsky was, at a11 times relevant,
  • such clas,s members is impracticable.
  • Period and, thus, defendants had a duty to correct these statements
  • REVENUES HIT RECORD LEVELS; LOSS
  • Court of Chancery of the State of Delaware, New Castle County, C.A.
  • [Emphasis add?aed]Or.
  • .Funde had a severe reserve shortfall.
  • While the Company achieved record health premium revenues
  • Alabama HMOs to Health Partners of Alabama,
  • combined company.
  • On a comparative basis, p rior to an $O.li per share gain
  • being assessed for this deficit.
  • 1996 (more than twice the $130 million
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