NU Online News Service, March 4, 2003, 10:14 a.m. EDT – Oxford Health Plans Inc., Trumbull, Conn., says it has “agreed in principle” to settle 1997 securities class-action litigation against it for $225 million.
A few months ago, the managed care company announced an effort to settle the litigation for just $161 million.
Securities lawyers began organizing class-action lawsuits against Oxford in 1997, after computer problems and accounting problems forced the company to post big, unexpected losses.
Oxford reports that it is still trying to persuade its insurers to pay what it believes to be their fair share of the settlement tab. So far, the insurers have agreed to pay only $25 million of the $225 million settlement, the company says.