CIGNA Corporation Securities Litigation

This lawsuit involves allegations concerning representations made by the Defendants in 2001 and in 2002 regarding the status of CIGNA's multi-year, billion dollar computer systems transformation project. Plaintiffs allege that Defendants made misrepresentations regarding the project that caused the price of CIGNA stock to trade at artificially inflated levels during the Class Period, and when CIGNA announced reduced earnings expectations due in part to the computer systems transformation project, the stock price fell, resulting in harm to the Class Members. Defendants deny the allegations.

The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement.

Plaintiffs' Co-Lead Counsel have agreed to settle the lawsuit based on the facts they have discovered during the litigation, the risks that will be involved in a trial, and their conclusions that the proposed settlement is fair, reasonable and adequate, and serves the best interests of the Class Members. Plaintiffs have determined that by settling, they avoid the cost and risks of a trial, while at the same time providing substantial compensation to the Class. Lead Plaintiff, the Class Representatives and Plaintiffs' Co-Lead Counsel believe that the settlement is best for all Class Members.

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