Appellate Division Upholds Denial of Defendants' Motion to Dismiss in Consumers' Union Litigation; WellChoice Anticipates Appeal.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--May 20, 2004 WellChoice, Inc. (NYSE NYSE See: New York Stock Exchange : WC), the parent company of Empire Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. , announced today that the Appellate Division of the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Supreme Court upheld the lower court's decision to deny defendants' motion to dismiss the amended complaint in the Consumers' Union litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . The amended complaint alleges that the New York State legislation underlying Empire's conversion to a for-profit company violated the New York State Constitution because the statute applies exclusively to Empire as a single entity. WellChoice anticipates filing a motion with the Appellate Division for permission to appeal the decision to the New York State Court of Appeals. "While we are disappointed in the decision, we remain confident that this case will not affect our operations," said Michael A. Stocker, M.D., President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of WellChoice. In denying defendants' motion to dismiss, the lower court judge in his October 2003 opinion stated that plaintiffs' decision not to block the company's initial public offering in November 2002, but to limit their request for preliminary relief to restraining the disposition of the proceeds of the sale by the selling stockholders in that offering, may affect such ultimate relief as may be granted in the action. For a full discussion of the Consumers' Union litigation, please refer to WellChoice's Annual Report on Form 10-K for the year ended December 31, 2003 and Quarterly Report on Form 10-Q for the three months ended March 31, 2004. About WellChoice, Inc. WellChoice, Inc. is the parent company of the largest health insurer in the State of New York based on PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there and HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, membership. WellChoice, through its Empire Blue Cross Blue Shield subsidiaries, has the exclusive right to use the Blue Cross and Blue Shield names and marks in 10 downstate New York Downstate New York is a term for the southeasternmost portion of New York State, United States, in contrast to Upstate New York. It should be noted that the term "Downstate New York" has significantly less currency than its counterpart term "Upstate New York", and the Downstate counties and one or both of these names and marks in selected counties in upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. . WellChoice offers a broad portfolio of products, including managed care and traditional indemnity products, and has a broad customer base including large group, middle-market and small group, individual, and national accounts. Additional information on WellChoice can be found at www.wellchoice.com. Cautionary Statement Some of the information contained in this press release is forward-looking, including statements relating to future financial or business results. Forward-looking information is based on management's estimates, assumptions and projections and is subject to significant uncertainties and other factors, many of which are beyond the company's control. Important risk factors could cause future results to differ materially from those estimated by management. Those risks and uncertainties include but are not limited to: our ability to accurately predict health care costs and to manage those costs through underwriting criteria, quality initiatives and medical management; product design and negotiation of favorable provider reimbursement rates; our ability to maintain or increase our premium rates; possible reductions in enrollment in our health insurance programs or changes in membership; the regional concentration of our business in the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. and the effects of economic downturns in that region or generally; future bio-terrorist activity or other potential public health epidemics; the impact of health care reform and other regulatory matters; the outcome of litigation; and the potential loss of our New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. account. For a more detailed discussion of these and other important factors that may materially affect WellChoice, please see the company's filings with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in its Annual Report on Form 10-K for the year ended December 31, 2003, and its Quarterly Report on Form 10-Q for the three months ended March 31, 2004. |
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