Oxford faces lawsuits from unhappy investors

Oxford Health Plans in Norwalk, CT, has finally gone public with its financial problems and is now facing 20 investor lawsuits for false and unreliable financial statements.

The company fell behind in payments to doctors and hospitals last year and saw its common stock drop 62% in October from $25.88 to below $15. The investors claim that Oxford misrepresented its difficulty with a new computer system and underestimated its expenses while overestimating its revenues. That essentially resulted in inadequate funds to make medical-cost payments and caused inaccurate financial statements.