Milberg Weiss Announces the Filing of a Class Action Suit on Behalf of Purchasers of the Securities of Aetna, Inc

Business Wire, Dec 26, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Dec. 26, 2001

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on November 30, 2001, on behalf of purchasers of the securities of Aetna, Inc. ("Aetna" or the "Company") (NYSE: AET) between December 1, 2000 and April 9, 2001, inclusive (the "Class Period").

A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/aetna/

The action, numbered 01CV6021, is pending in the United States District Court for the District of Pennsylvania, located at 601 Market Street, Philadelphia, PA 19106, against defendants Aetna, William H. Donaldson (Chairman of the Board) and John W. Rowe (Chief Executive Officer, President and Director). The Honorable John R. Padova is the Judge presiding over the case.

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between December 1, 2000 and April 9, 2001. For example, the complaint alleges that in order to successfully spin-off New Aetna, its domestic healthcare and large case pensions businesses, defendants represented that New Aetna was successfully implementing operative and strategic initiatives to improve efficiency and decrease medical costs. These statements were allegedly false and misleading because medical costs were in fact escalating due to, among other factors, overpaying and double-paying claims and inadequate risk-enrollment pricing. On April 10, 2001, Aetna announced that the Company's first quarter of 2001 financial results would be significantly lower than previous estimates due to increased medical costs caused by a higher demand for healthcare services in the fourth quarter of 2000 and first quarter of 2001. In response to this announcement, the price of Aetna's common stock dropped by 20%, falling from $36.15 per share on April 9, 2001 to $28.75 on April 10, 2001.

If you bought the securities of Aetna between December 1, 2000 and April 9, 2001, you may, no later than January 29, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, and Boca Raton and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman or Samuel H. Rudman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165

Phone number: (800) 320-5081
Email: aetnacase@milbergNY.com
Website: http://www.milberg.com