HEALTHEXTRAS
For Immediate Release Contact:
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KCSA Worldwide Public Relations
Todd Fromer / Elizabeth Mwangi
212-896-1215 / 212-896-1242
todd@kcsa.com / emwangi@kcsa.com
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HEALTHEXTRAS FILES COMPLAINT
ROCKVILLE, MD, DECEMBER 4, 2002 -- HEALTHEXTRAS, INC. (NASDAQ: HLEX), a
pharmacy benefit management company, announced today that it has filed a
complaint in federal court in Manhattan charging SG Cowen, one of its former
managing directors and its parent company (Societe Generale) with, among other
things, securities manipulation and securities fraud.
In September 2001, HealthExtras sold securities in what is known as a
private investment in public equity, or "PIPE" offering. The complaint alleges
among other things, that SG Cowen, while acting as exclusive placement agent for
the HealthExtras offering, exploited the confidentiality of the PIPE offering by
manipulatively short selling HealthExtras stock. According to the complaint,
HealthExtras has been advised by SG Cowen that the managing director responsible
for the short selling has been terminated.
The complaint further states that this manipulation lowered the price of
HealthExtras shares, thus reducing HealthExtras' market capitalization by more
than $90 million. This short selling, according to the complaint, harmed
HealthExtras by, among other things, reducing the amount of the proceeds of the
PIPE offering. Additional information regarding the complaint is available in
the Company's filing with the Securities and Exchange Commission.
HealthExtras intends to vigorously prosecute its claims against SG Cowen,
its former managing director, and its parent.
ABOUT HEALTHEXTRAS, INC. (WWW.HEALTHEXTRAS.COM)
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HealthExtras, Inc. is a diversified provider of pharmacy, health and disability
benefits. The Company currently provides benefits to over 1.5 million members
and the Company's clients include managed care organizations, large employer
groups, unions, government agencies and individual consumers.
The Company's integrated pharmacy benefit management services include: claims
processing, mail order services, benefit design consultation, drug utilization
review, formulary management and drug data analysis services. Additionally, the
Company operates a national retail pharmacy network with over 53,000
participating pharmacies.
You may register to receive HealthExtras future press releases or to download a
complete Digital Investor Kit(TM) including press releases, regulatory filings
and corporate materials by clicking on the "KCSA Interactive Platform" icon at
www.kcsa.com.
This press release may contain forward-looking information. The forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties described in
HealthExtras' filings with the Securities and Exchange Commission.
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