Law Firm Files Suit Against PacifiCare

A Florida law firm said Friday that it has filed a lawsuit against Santa Ana managed-care provider PacifiCare Health Systems Inc., alleging securities laws violations from Oct. 27, 1999, to Oct. 10. The firm of Cauley & Geller LLP in Boca Raton said in a press release that it is seeking class action status for the suit. The law firm said the suit alleges certain PacifiCare officers and directors, and a large shareholder, provided materially false and misleading information about the company, artificially inflating the stock price. A PacifiCare spokesperson wasn’t available for comment. The suit follows the company’s Oct. 10 warning about its fiscal third-quarter and annual financial results. The company said it would increase medical claims and benefits payable reserves by $25 million to $30 million for changes in estimates of medical expenses, related primarily to the quarter ended June 30 and prior periods.