Oxford faces lawsuits from unhappy investors
Oxford faces lawsuits from unhappy investors
Oxford Health Plans in Norwalk, CT, has finally gone public with its financial problems and is now facing 20 investor lawsuits for false and unreliable financial statements.
The company fell behind in payments to doctors and hospitals last year and saw its common stock drop 62% in October from $25.88 to below $15. The investors claim that Oxford misrepresented its difficulty with a new computer system and underestimated its expenses while overestimating its revenues. That essentially resulted in inadequate funds to make medical-cost payments and caused inaccurate financial statements.
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.