WellPoint, former CFO sued

NEWS IN BRIEF — Posted July 16, 2007

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A former WellPoint employee has sued the company and its former chief financial officer. The lawsuit accuses David Colby of sexual battery, breach of contract and infliction of emotional distress, and WellPoint of being negligent to Colby's alleged conduct.

Sarah Waugh, who worked for WellPoint in its Thousand Oaks, Calif., headquarters before it merged with Anthem and moved to Indianapolis, claims in the lawsuit that Colby, 53, maintained "concurrent relationships" with her and more than 15 other women, and "acted with the intent" to cause her harm. Waugh, 29, said WellPoint fired her when she complained about Colby's conduct, though he continued a relationship with her afterward.

Representatives for Colby and WellPoint did not comment on the lawsuit, filed in Los Angeles.

WellPoint let Colby go May 30 after determining that he had violated the company's personal-conduct policy. The firm has not revealed what precipitated the probe, nor what specific violations it found. "The investigation did not reveal illegal conduct, and the policy violations were in no way related to the business of WellPoint," said a release about Colby's departure.

Waugh's attorney also is representing another woman suing Colby, claiming he promised her a $4.4 million California home. That lawsuit was filed soon before WellPoint let him go. Both women have sold their stories about experiences with Colby to a Hollywood producer. Colby is separated from his second wife, who filed for divorce from him in 2004.

Wall Street analysts considered Colby the face of the company to investors and credited him for its financial success.

Note: This item originally appeared at

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