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WellCare Shares Trade Lower After News Blog Post

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Jerome R. Stockfisch

Published: January 24, 2008

Shares in WellCare Health Plans continued to drift lower today after a Wall Street Journal blog reported that the company's three top executives were being shown the door.

WellCare shares were trading at $46.30 at 2:45 p.m., down $4.64 or 9.1 percent from Wednesday's close.

Company officials would not address the situation Wednesday or today. "WellCare does not comment on speculation about the company by members of the media or others," a spokeswoman said in an e-mailed statement.

The Journal's Health Blog reported late Wednesday that WellCare's board was negotiating severance packages for Chief Executive Officer Todd Farha, Chief Financial Officer Paul Behrens and general counsel Thaddeus Bereday.WellCare, the Tampa-based company that administers government health care programs, was raided by federal agents Oct. 24.

The U.S. Attorney's Office in Tampa has not revealed why it is targeting the company, and the company says it is also unaware of the nature of the investigation. WellCare shares plunged from more than $120 to less than $21 after the raid.

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