Amerigroup Corp. failed
to get a securities-fraud lawsuit filed against the
company thrown out of court, but federal Judge Henry
C. Morgan Jr. criticized parts of the suit for lack
of details required under federal law. The suit against
the Virginia Beach managed-care company was brought
by five stockholders, including the Illinois State
Board of Investment, lead plaintiff in the case, after
some Amerigroup officers
sold shares while earnings forecasts were favorable,
and prior to disclosures of internal difficulties and
subsequent company losses. Morgan denied Amerigroup’s
request for dismissal and ordered the parties to try
and resolve
the dispute through mediation. (The Virginian-Pilot)
MAXIMUS Inc., a Reston-based provider of government
services, settled a suit filed in Georgia concerning fraudulent
guarantees of computer equipment leases signed by former
employees. A charge of $10 million is expected in the
third quarter as a result of the settlement. A related
suit in Pennsylvania
was settled in September 2005. (Business Wire)
