Amerigroup Executives Under Fire, Selling Shares By The Hundreds Of Thousands
AMERIGROUP Corporation (NYSE:AGP) and its board of directors are currently under investigation by Glancy Binkow & Goldberg LLP, which is looking into the relation between the directors and the proposed acquisition of the company by WellPoint Inc, valued at $4.9 billion.
The allegations come as company officials unload hundreds of thousands of dollars in company stock, indicating they may not be too confident about the formal investigation.
The investigation will take place to help decide whether the Amerigroup board of directors breached their fiduciary duties to stockholders by not appropriately shopping the company before entering into the proposed transaction. Investigators are also looking to see if the company divulged all necessary information to its shareholders, including information on the company's recent substantial growth, and one analysts' set target price of $95.00.
However, James Truess, executive vice president and CFO, sold 5,100 shares that ranged between $60.86 and $65.30 for a total of $317,050 last month. Total insider transactions from the company amounted to $881,020 in the last three months, according to insider trading reports.
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