According to an article in the Associated Press, Humana Inc. (NYSE: HUM) has agreed to settle a securities class action brought against Physicians Corp. of America in the S.D. of Fla. (Humana purchased Physicians Corp. in 1997.)
The case alleges that Physicians Corp. hid financial losses in 1996 and 1997. The settlement comes after the denial of a motion to dismiss and is for $10.2 million or an estimated 81 cents per share (44 cents per share after expenses).
Quote of note: Lead counsel for the plaintiffs, defending the size of the settlement, stated – “‘They’re not easy to win. You don’t see many Enrons. You may think you see a lot of Enrons but you don’t, and Physicians Corporation is not an easy case,’ he said. ‘I think it could have been won, but it’s not a sure thing.'”