August 9, 2010
Lead Plaintiffs Announce $200 Million Settlements with WellCare Health Plans, Inc.
NEW YORK, NY (August 9, 2010) - The Court-appointed Lead Plaintiffs in the securities class action against WellCare Health Plans, Inc. ("WellCare") (NYSE: WCG) and its former senior executives today announced that they have reached a settlement with WellCare in which the total consideration to be paid is at least $200 million. The Court appointed Lead Plaintiffs are Teachers' Retirement System of Louisiana ("TRSL"), Public School Teachers' Pension & Retirement Fund of Chicago ("Chicago Teachers"), Policemen's Annuity and Benefit Fund of Chicago ("Chicago Police"), the New Mexico State Investment Council, and the Public Employees Retirement Association of New Mexico.
The settlement funds will be distributed to WellCare common stock purchasers included in a consolidated securities class action presently pending before the Honorable Virginia M. Hernandez Covington in the United States District Court for the Middle District of Florida. Under the terms of the settlement, WellCare agreed to pay a total of $87.5 million in cash and $112.5 million in freely tradable, registration-exempt bonds with a maturity date of December 31, 2016 and a fixed coupon of 6%. WellCare further agreed to pay an additional $25 million in cash if, at any time in the next three years, WellCare is acquired or otherwise experiences a change in control at a share price of $30 or more after adjustments for dilution or stock splits. WellCare also agreed that, should it recover any sums from Individual Defendants Todd S. Farha, Paul Behrens, and Thaddeus Bereday, it shall pay 25% of those proceeds to the Class. The settlement is subject to approval by the United States District Court.
The New Mexico State Investment Council and the Public Employees Retirement Association of New Mexico were represented by Labaton Sucharow LLP. TRSL, Chicago Teachers, and Chicago Police were represented by Bernstein Litowitz Berger & Grossmann LLP. Labaton Sucharow LLP and Bernstein Litowitz Berger & Grossmann LLP also served as Co-Lead Counsel for the Class.