Health Net, Woodland Hills, Calif., is being sued for more than $200 million in damages by an investor group that claims the 1998 sale of Health Net's workers' compensation subsidiary was fraudulent. The lawsuit, filed in New York Supreme Court, claims the insurer did not reveal financially relevant information before it sold its troubled Business Insurance Group unit to Superior National Insurance Group for $285 million. New York-based investor group Capital Z Financial Services Fund raised about $160 million to help Superior complete the deal, but California regulators seized the business insurance unit in March 2000 and Superior filed for bankruptcy protection weeks later. Health Net last month settled a similar lawsuit with Superior trustees for $137 million. -- by Laura B. Benko
Lawsuits continue over sale of Health Net unit
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