TBO.com - TBO is Tampa Bay Online

WellCare Shares Plunge Further Friday In Response To Raid

ADVERTISEMENT

By The Tampa Tribune | The Tampa Tribune

Published: October 26, 2007

TAMPA – Shares in WellCare Health Plans Inc. sank further Friday, falling more than 20 percent, as investors continued to flee the stock in response to Wednesday's raid of company headquarters by federal and state agents.
At 3 p.m. shares were down $9.77, or 22 percent to $32.90.
More than 25 million shares traded hands Friday – more than 20 times the daily average.
On Thursday, shares plunged more than 60 percent.
The company issued a prepared statement Friday saying "The primary focus of WellCare Health Plans, Inc. is to ensure that operations are running smoothly, provider claims are paid in a timely manner, customers' calls are answered and access to covered health care services for members is provided.
"We continue to respond to Wednesday's developments in a direct, prompt and orderly manner," said Todd S. Farha, chairman and chief executive officer. "We remain committed to cooperating with the government throughout this process."

Neither the company, nor FBI and other authorities involved in Wednesday's raid, have divulged the reason behind the action. More than 200 agents from the FBI, U.S. Department of Health and Human Services, and the Florida attorney general's Medicaid Fraud Control Unit searched the company's corporate campus on Henderson Road in Tampa on Wednesday.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT