San Diego, CA -- (SBWIRE) -- 05/07/2012 -- An investigation on behalf of investors in (NYSE:HNT shares over potential securities laws violations by certain officers and directors at Health Net, Inc. in connection with certain financial statements was announced.
Investors who purchased shares of Health Net, Inc. (NYSE:HNT) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Health Net, Inc. (NYSE:HNT) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements made about Health Net’ business, its prospects and its operations were potentially materially false and misleading at the time they were made.
Health Net, Inc. reported that its annual revenue fell from $13.61billion in 2010 to $11.9billion in 2011 and its Net Income from $204.24million to $72.12million respectively.
Nevertheless, shares of Health Net, Inc. (NYSE:HNT) rose from as low as $21.07 per share in August 2011 to over $40 per share in April 2012.
Then on May 3, 2012, Health Net, Inc reported its financial results for the first quarter of 2012. Among other things, Health Net, Inc announced a 2012 first quarter GAAP net loss of $26.6 million, or a loss of $0.32 per share, compared with a GAAP net loss of $108.2 million, or a loss of $1.16 per share, for the first quarter of 2011. Health Net, Inc said that “The company underestimated incurred but not reported (IBNR) commercial reserves at December 31, 2011 due to significant delays in claims submissions for the fourth quarter of 2011 coupled with an unanticipated flattening of commercial medical claims trends. As a result, the company recorded approximately $67.0 million of adverse prior period development for the fourth quarter of 2011.”
Shares of Health Net, Inc. (NYSE:HNT) dropped from $36.34 per share on May 2, 2012 to as low as $25.83 per share during May 3, 2012.
NYSE:HNT shares closed on Friday, May4, 2012 at $27.58 per share.
Those who purchased shares of Health Net, Inc. (NYSE:HNT), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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