WellPoint Inc. 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. A jury trial had been scheduled to begin June 18 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, 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 the judge determines that the settlement is fair, adequate and reasonable. In filings made with the court, 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.
“The $90 million settlement is one of the largest ever reported in the State of Indiana,” said Kathleen DeLaney, co-class counsel. “The Court certified a class of more than 700,000 residents of Indiana, Ohio, Kentucky and Connecticut.”