NU Online News Service, July 22, 2:56 p.m. – UICI, Dallas, a company that sells niche insurance products and products aimed at older consumers, says it has entered into a memorandum of understanding with the plaintiffs in Silver vs. UICI, a securities class-action suit filed against it in the U.S. District Court in Dallas.
UICI says the proposed settlement, which is subject to court approval, should have no material adverse effect on its condition.
Lawyers for the plaintiffs in the case say UICI misrepresented the condition of a credit card program that was discontinued in January 2000. The plaintiffs’ lawyers have been seeking court permission to represent a class that consists of investors who bought UICI stock between Feb. 10, 1999, and Dec. 9, 1999.
UICI has stated in documents filed with the U.S. Securities and Exchange Commission that it believes the allegations in the plaintiffs’ complaint are without merit.