A stockholders class-action suit has been filed...

A stockholders class-action suit has been filed against directors of Maxicare Health Plans alleging that the firm misstated its profitability to inflate its market price, ultimately driving its stock down. The Superior Court suit, which seeks unspecified damages, was filed on behalf of Charles Miller of New York, and others who, like him, purchased common stock or 11.75% senior subordinated notes in Maxicare Health Plans between Oct. 17, 1985, and Feb. 29, 1988. The suit names Maxicare’s Chairman Fred Wasserman among the defendants. Miller is suing the Los Angeles-based Maxicare, the nation’s largest publicly held health maintenance organization, for alleged fraud, deceit, negligent misrepresentation and violation of the California Corporations Code.