HEALTH CARE
From Times Staff and Wire Reports
Shareholders Sue FHP International Corp.: California’s largest operator of health maintenance organizations said two shareholders have filed a suit contending that it misled investors about the membership potential of its Medicare substitute program and about the seriousness of a government investigation into the program this summer. The suits claim that FHP knew and failed to disclose that the federal government was unhappy with its sales practices when the company issued 4.5 million common shares for sale May 3. FHP said it has not had an opportunity to study the two lawsuits in detail but intends to defend itself vigorously against the charges.
