Maxicare OKs Strategy Against Investor Suit

Los Angeles-based Maxicare Health Plans Inc. said its board of directors has unanimously approved a plan to protect the managed-care company from a lawsuit filed by a shareholder. Paul R. Dupee Jr., who holds a 3.9% stake, wants a U.S. District Court to approve his plan to add 10 members--including directors who would explore a sale of the company--to Maxicare's seven-person board. The board moved on Sunday to increase its defenses against hostile takeovers, including approval of an amendment that increases the shareholder vote necessary to boost the size of the board. Maxicare operates in seven states, including California.

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