December 18, 2006

CIGNA Settles

CIGNA Corp. (NYSE: CI), a Philadelphia-based employee benefits provider, last week announced the preliminary settlement of the securities class action pending against the company in the E.D. of Pa. The case, which was filed in 2002 and scheduled for trial in March 2007, alleges that CIGNA made various false and misleading statements by providing unrealistically high income guidance to the market and failing to disclose that it had been under-reserving for certain reinsurance obligations. The 10b-5 Daily has posted on a decision in the case related to the disclosure of confidential sources. The proposed settlement is for $93 million.

Posted by Lyle Roberts at December 18, 2006 9:42 PM | TrackBack
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