July 24, 2012 (PLANSPONSOR.com) - Coventry Health Care Inc. has been accused of breaching its fiduciary duties under the Employee Retirement Income Security Act (ERISA).
The company offered and maintained stock in its retirement savings plan after it became imprudent to do so and failed to provide complete and accurate information about its financial condition to plan participants in Securities and Exchange Commission (SEC) filings and public statements, current and former employees allege.
Coventry shares traded between February 9, 2007 and October 22, 2008 as high as $61.47 per share.
On October 21, 2008, Coventry Health Care issued a press release announcing its financial results for its third quarter of 2008 (the period ended September 30, 2008).
In response to this announcement, the price of Coventry Health Care common stock declined significantly. Its shares fell from over $60 per share in January 2008 to as low as $8.36 per share in March 2009.
Coventry shares closed at $32.12.