Universal American Financial Corp. responded to a class-action complaint against some of its directors, calling the lawsuit, “without merit” in a written response.
The lawsuit, filed in state Supreme Court in Westchester County, alleges the defendants breached fiduciary duties they owed to Universal American’s shareholders in connection with Universal American entering into merger agreement to buy MemberHealth Inc. and that “directors who are defendants of the company allegedly breached their candor of duty to Universal American”™s shareholders by failing to disclose material information concerning the transactions.”
The plaintiffs seek, among other things, an injunction against the consummation of the merger agreement and damages in an unspecified amount.
In a written statement from the company, Universal American, a Rye-based provider of Medicare Advantage insurance and other health coverage plans, said it “has reviewed the complaint and believes that the lawsuit is without merit, and intends to defend against the claims vigorously.”
In other company news, Universal American reported last week a net income of $22.3 million for the second quarter, or 35 cents per share, on revenues of $703.5 million.
The acquisition of MemberHealth is on target to close by the end of the third quarter, the company said.
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