WellCare settles with shareholders

By Mike Wells
8/9/2010 © Health News Florida

WellCare Health Plans announced a second-quarter loss but also preliminary settlement of a class-action suit by shareholders with the Securities and Exchange Commission for $200 million.

This proposed settlement does not affect the one still pending with the U.S. Attorney’s Office for the Middle District of Florida over civil charges of Medicaid fraud. The company has said previously that it expects to settle that case for about $137.5 million, although a whistleblower in the case has promised to fight for more.

Other news from the company is also a mix of positive and negative. WellCare achieved full accreditation — an effort that takes years — from a national association, but also announced restructuring plans that will involve layoffs.

Most of the positions being eliminated are currently unfilled, the company said, so layoffs should affect fewer than 100 employees among a workforce of 3,400.

Read the rest of the story here.


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