UICI, Inc.On January 18, 2004, a consolidated class action complaint was filed in the United States District Court for the Northern District of Texas against UICI, Inc., its former student loan servicing subsidiary American Management Services, Inc. ("AMS"), and former and current officers of both UICI and AMS for violations of U.S. securities laws. Cohen Milstein was appointed co-lead counsel on behalf of all person that purchased UICI securities between February 7, 2002, and July 21, 2003, inclusive (the "Class Period"). The complaint alleges that the defendants artificially inflated the price of UICI stock by concealing the fact that AMS's student loan portfolio was under collateralized in violation of its finance agreements with its insurers. In particular, the Complaint alleges that defendant Alcorn, UICI's President and CEO during the Class Period, intentionally manipulated reports to investors that had the purpose and effect of concealing the fact that AMS student loan portfolios were undercollaterized and that, in many instances, AMS was in violation of its loan covenants. On September 29, 2006, the court denied Defendants’ request to dismiss the Complaint in its entirety. The Parties entered a stipulation of proposed settlement on October 4, 2007 of all claims against Defendants for $6.9 million. On January 23, 2008, the Court entered final approval of this settlement. |
