June 15, 2012 - WellPoint 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 Companies, Inc.
("Anthem"). The parties had been scheduled to begin a jury trial on
June 18, 2012 in federal court in Indianapolis on legal claims
arising from Anthem's 2001 conversion from a mutual company, owned
by its insured policyholders, to a stock company. WellPoint, Inc.
is the corporate parent of Anthem. The settlement, if approved by
U.S. District Judge Tanya Walton Pratt, will resolve the lawsuit
filed in 2005 by those Anthem members who received cash
compensation as part of the conversion process. The class action
complaint alleged that Anthem did not pay the former mutual company
members the fair value of their membership interests.
The settlement will not become final and the settlement proceeds
cannot be paid to the class members unless and until Judge Pratt
determines that the settlement is fair, adequate and reasonable. In
filings made with the Court today, the plaintiffs propose to send
settlement notices to class members later this summer, with checks
to be mailed to class members starting as soon as the settlement
becomes final and fully in effect.
Berger and Montague, P.C. was one of five firms who represented
the plaintiffs in the case as class counsel. Berger and Montague
Attorneys Laddie Montague, Peter Kahana, and Arthur Stock all
contributed to achieving the positive result.
The $90 million settlement is one of the largest ever reported
in the State of Indiana.
Details about the terms of the settlement can be found at: