WellPoint settles lawsuit over Anthem conversion for $90 million

NEWS IN BRIEF — Posted July 9, 2012

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

Eleven years after the merger that created Indianapolis-based WellPoint, the company has reached an agreement with former investors who sued in federal court over the way the deal happened. WellPoint will pay $90 million to settle the case, according to a June 15 filing with the U.S. Securities and Exchange Commission.

The plaintiffs in the case were members of Anthem, which at the time was a mutual corporation. They claimed that the company misinformed them about the relative advantages of accepting cash or stock in the new company as WellPoint prepared for its initial public offering, that the company had set the IPO price too low, and that it diluted Anthem members’ equity in the new company.

WellPoint estimated that the settlement would reduce its quarterly earnings by about 23 cents per share.

When Anthem and WellPoint Health Networks merged in 2004, the new company became the largest publicly traded health plan in the country, a distinction it held until last year, when its membership was eclipsed by UnitedHeath Group.

Note: This item originally appeared at

Back to top



Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story

Read story


American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story

Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story

Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story

Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story

Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story

Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story

Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story

  • Stay informed
  • Twitter
  • Facebook
  • RSS
  • LinkedIn