Magellan Shares Fall 25 Percent After Company Issues Earnings Warning

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst

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Shares of Magellan Health Services dropped more than 25 percent on December 4, 2001 after the company warned that unexpectedly high costs for mental health care since September 11 will cause a loss on its core operations in the fourth quarter. Magellan said its earnings were affected by higher than expected expenses, including higher care costs, partly associated with the World Trade Center attacks. According to Erin Somers, Director of Media Relations for Magellan, about 1,800 requests for . . .