Defendant Name: WellCare Health Plans, Inc.

Defendant Type: Public Company
SIC Code: 6324
CUSIP: 94946T10

Initial Case Details

Legal Case Name SEC v. WellCare Health Plans, Inc.
First Document Date 18-May-2009
Initial Filing Format Civil Proceeding
Case Number 09-cv-00910
Allegation Type Issuer Reporting and Disclosure
Federal District Court Florida, Middle District of Florida

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a) (Not specified)

Resolutions

First Resolution Date 18-May-2009
Headline Total Penalty and Disgorgement $10,000,001

Related Documents:

comp21044 18-May-2009 Complaint
Complaint
The SEC stated: "From at least November 2003 through at least October 2007 (the "relevant period"), defendant WellCare Health Plans, Inc. ("WellCare" or the "Company"), a managed health care services company, engaged in a fraudulent health care scheme which inflated its publicly reported profits by retaining over $40 million it was statutorily and contractually obligated to reimburse to agencies of the state of Florida. As a result, WellCare materially overstated its publicly reported net income and diluted earnings per share ("EPS") in its periodic filings with the Commission throughout this period."
LR-21044 18-May-2009 Litigation Release
SEC Files Action Against WellCare Regarding Scheme to Withhold Money from Florida Health Care Programs; Company to Pay $10 Million Penalty
The SEC stated that: "[It] filed a settled civil injunctive action against WellCare Health Plans, Inc. ("WellCare"), a managed care services company that administers federal government-sponsored health care programs. According to the Commission's complaint, from at least November 2003 to October 2007, WellCare fraudulently retained over $40 million it was required to return to Florida state agencies under programs that provided mental health services to Medicaid recipients and health care services to uninsured children. As a result, WellCare materially overstated its publicly reported net income and diluted earnings per share in periodic filings made with the Commission."
court_doc4_09-cv-00910 01-Jun-2009 Court Docket Document
Final Judgment as to Defendant WellCare Health Plans, Inc.
On June 1, 2009, the Court issued a final judgment as to Defendant WellCare Health Plans, Inc., stating: "Defendant WellCare Health Plans, Inc. . . . consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."