Oxford Health Plans, Trumbull, Conn., said it would take a $151.3 million pretax charge as part of its offer to settle more than 50 lawsuits filed after its 1997 collapse related to information systems problems. The settlement offer also includes $10 million from Oxford's primary directors' and officers' insurance. As a result of the charge, the company expects to report net income of approximately 26 cents per diluted share for the quarter ended Sept. 30. Full financial results are expected Oct. 29, and a settlement conference has been scheduled for Nov. 6 in U.S. District Court in New York, where the suits are consolidated. Oxford's stock traded at a high of $89 per share in mid-1997 before plunging to below $15 per share in December of that year, triggering a flurry of lawsuits alleging mismanagement. As of this morning, the company's stock traded about $44 per share, down slightly. Any settlement would not apply to a pending suit by Florida's State Board of Administration or to an investigation by the New York attorney general's office. Oxford has about 1.5 million members in Connecticut, New Jersey and New York. -- by Michael Romano
Settlement of lawsuits would chop Oxford's profit
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