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WellPoint agrees to $90M settlement with former Anthem members

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Indianapolis-based WellPoint Inc. has agreed to pay $90 million to settle a class-action lawsuit brought on behalf of more than 700,000 former members of Anthem Insurance Cos. Inc., lawyers for the plaintiffs said Friday afternoon.

The suit was set to go to trial on June 18 in federal court in Indianapolis on claims arising from Anthem’s 2001 conversion from a mutual company, owned by its insured policyholders, to a public company.

WellPoint is the corporate parent of Anthem.

The settlement, if approved by U.S. District Court Judge Tanya Walton Pratt, will resolve the lawsuit filed in 2005 by Anthem members who received cash compensation as part of the conversion process to a public company. The conversion resulted in Anthem’s shelling out nearly $2.1 billion in cash to more than 700,000 policyholders.

The complaint alleged that Anthem did not pay the former mutual company members the fair value of their interests.

Other policyholders elected to receive stock in the conversion, and they have sued WellPoint in a separate lawsuit.

If the $90 million settlement is approved, checks should be mailed to class members later this summer. Each class member would receive about $128.57, not counting attorneys’ fees.

Anthem was prepared to “vigorously defend itself at trial but is pleased to have reached a settlement," the company said in a prepared statement.

“We continue to believe that in all ways the company acted appropriately and in the best interests of its former members,” WellPoint said. “Today’s settlement enables us to put this matter behind us and focus our time and energy on meeting the needs of our customers.”

The company said the Indiana Department of Insurance reviewed the transaction and found it to be fair, reasonable and equitable to Anthem's former members.
 

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  1. IF the Right to Vote is indeed a Right, then it is a RIGHT. That is the same for ALL eligible and properly registered voters. And this is, being able to cast one's vote - until the minute before the polls close in one's assigned precinct. NOT days before by absentee ballot, and NOT 9 miles from one's house (where it might be a burden to get to in time). I personally wait until the last minute to get in line. Because you never know what happens. THAT is my right, and that is Mr. Valenti's. If it is truly so horrible to let him on school grounds (exactly how many children are harmed by those required to register, on school grounds, on election day - seriously!), then move the polling place to a different location. For ALL voters in that precinct. Problem solved.

  2. "associates are becoming more mercenary. The path to partnership has become longer and more difficult so they are chasing short-term gains like high compensation." GOOD FOR THEM! HELL THERE OUGHT TO BE A UNION!

  3. Let's be honest. A glut of lawyers out there, because law schools have overproduced them. Law schools dont care, and big law loves it. So the firms can afford to underpay them. Typical capitalist situation. Wages have grown slowly for entry level lawyers the past 25 years it seems. Just like the rest of our economy. Might as well become a welder. Oh and the big money is mostly reserved for those who can log huge hours and will cut corners to get things handled. More capitalist joy. So the answer coming from the experts is to "capitalize" more competition from nonlawyers, and robots. ie "expert systems." One even hears talk of "offshoring" some legal work. thus undercutting the workers even more. And they wonder why people have been pulling for Bernie and Trump. Hello fools, it's not just the "working class" it's the overly educated suffering too.

  4. And with a whimpering hissy fit the charade came to an end ... http://baltimore.cbslocal.com/2016/07/27/all-charges-dropped-against-all-remaining-officers-in-freddie-gray-case/ WHISTLEBLOWERS are needed more than ever in a time such as this ... when politics trump justice and emotions trump reason. Blue Lives Matter.

  5. "pedigree"? I never knew that in order to become a successful or, for that matter, a talented attorney, one needs to have come from good stock. What should raise eyebrows even more than the starting associates' pay at this firm (and ones like it) is the belief systems they subscribe to re who is and isn't "fit" to practice law with them. Incredible the arrogance that exists throughout the practice of law in this country, especially at firms like this one.

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