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July 01, 2005 at 08:00 PM
Health Net Inc. says a state court jury in Baton Rouge, La., has awarded $117 million in damages to the receivers managing a failed Texas health plan once owned by Health Net.[@@]
Health Net, Los Angeles, sold the Texas plan and 2 plans in Louisiana and Oklahoma to AmCareco Inc., Houston, in 1999. AmCareco filed for bankruptcy court protection in 2002.
When receivers took over the bankrupt plans, they sued AmCareco, Health Net and other parties, charging the defendants with fraud, negligence, conspiracy and breach of fiduciary duty, Health Net says.
The Louisiana award, which applies to all of the defendants in the case, consists of $52.4 million in compensatory damages and $65 million in punitive damages, Health Net says.
