HEALTH NET WILL FIGHT JUDGMENTS JURY FINES MANAGED CARE FIRM $117 MILLION.Byline: Brent Hopkins Staff Writer WOODLAND HILLS - Facing $117 million in fines stemming from the failure of three former subsidiaries, Health Net Inc. vowed Friday to keep up its legal fight. The managed care company sold its Foundation Health Plans in Louisiana, Oklahoma and Texas in April 1999 to AmCareco Inc. for an undisclosed price. Within three years, state regulators took over all three and placed them into receivership receivership In law, state of being in the hands of a receiver, a person appointed by the court to administer, conserve, rehabilitate, or liquidate the assets of an insolvent corporation for the protection or relief of creditors. . Alleging fraud, conspiracy, negligence and other crimes, the receivers then sued both companies. Health Net has maintained its innocence throughout, but faced a setback on Thursday when a Louisiana jury awarded the Texas receivers $52.4 million in compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. and another $65 million in punitive charges. Roughly $8 million of the compensatory damages would be paid by other parties in the suit, however. ``We continue to believe that the claims have no merit,'' said David Olson. ``We're going to continue to fight because we believe in our case. The fact of the matter is we sold them in 1999 and it was three years later that they became insolvent.'' The plaintiffs allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. Health Net knew its plans were in poor financial shape when it sold them, then extracted an additional $8 million in payments that forced them into insolvency. The extremely litigious litigious adj. referring to a person who constantly brings or prolongs legal actions, particularly when the legal maneuvers are unnecessary or unfounded. Such persons often enjoy legal battles, controversy, the courtroom, the spotlight, use the courts to punish sale has already resulted in numerous settlements from parties involved in the transfer, with Health Net remaining the lone holdout hold·out n. One that withholds agreement or consent upon which progress is contingent. Noun 1. holdout - a negotiator who hopes to gain concessions by refusing to come to terms; "their star pitcher was a holdout for six . ``We're hopeful that the jury sent a message to Health Net and that the judge will send one to get this over with,'' said Marlon Harrison, the receiver for AmCare Health Plans of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. . ``To drag this out even more will just cost the receiverships more time and money.'' Thursday's award represents only the Texas portion of the case, with plaintiffs in the other two states seeking an additional $30 million in compensatory awards and punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. , as well. Harrison said he expected a ruling from the judge by the end of next week. ``We're really happy with the verdict and for the people who received the damages,'' said Jessica Fisher, a spokeswoman for the Oklahoma Department of Insurance. ``We're looking forward to an award for the people in Oklahoma, as well.'' Shares of Health Net closed at $37.53 on Friday, down 63 cents. Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
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