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Judge approves $90M for Anthem plaintiffs

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A federal judge has approved the largest class-action settlement to come out of an Indianapolis court, paying $90 million to former Anthem Inc. policyholders.

The settlement will go to 700,000 claimants in Indiana, Ohio, Kentucky and Connecticut, who said Anthem underpaid them when it converted in 2001 from policyholder ownership into publicly traded company WellPoint Inc.

The settlement is likely to be a big victory for a small Indianapolis firm, DeLaney & DeLaney, the only local law practice that worked on the case. The six law firms that worked on behalf of plaintiffs are requesting $30 million in fees.

The plaintiffs alleged they were underpaid in a range from $227 million to $448 million, but WellPoint contended it owed them nothing.

Judge Tanya Walton Pratt found after an Oct. 25 hearing that terms of the settlement were fair, reasonable and adequate, but her ruling on attorney fees is forthcoming.

Pratt also granted a “case contribution” award to the lead plaintiffs, Mary Ormond and Kevin Heekin, and approved expenses and costs. WellPoint’s attorney, Craig Hoover, took no position on the settlement plan.

 

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