Class Action Suits Against Conseco
A number of law firms have filed a class action lawsuit against Conseco Inc. (CNO)on behalf of purchasers of its common stock between August 4, 2005 and March 17, 2008.
Shalov Stone Bonner & Rocco LLP, Izard Nobel LLP and Coughlin Stoia Geller Rudman & Robbins LLP charged Conseco and certain of its officers and directors with violations of the federal securities laws.
The lawsuits are a consequence of a disclosure by Conseco on March 17, 2008 that it did not maintain effective controls over the accounting and disclosure of insurance policy benefits and the liabilities for insurance products, and that it would therefore restate its financial results for the years ended December 31, 2004 and 2006, along with affected Selected Consolidated Financial Data for 2003 and 2004, and quarterly financial information for 2006 as well as the first three quarters of 2007.
The complaint alleges that Conseco misrepresented and/or failed to disclose the following adverse facts:
- Conseco was reporting materially inaccurate revenue figures
- Conseco’s reported financial results were materially misstated and did not present its true operating performance
- Conseco’s shareholders’ equity was materially overstated including the overstatement of shareholders’ equity by $20.6 million at December 31, 2006
- Conseco lacked a reasonable basis for its positive statements, its corporate governance practices, its prospects and earnings growth.
Indianapolis-based Conseco, Inc. is a top-tier holding company for a group of insurance companies operating throughout the United States. The group develops, markets and administers supplemental health insurance, annuity, individual life insurance and other insurance products.
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