The Doctors Co., a California medical malpractice insurer, is no longer under investigation by federal authorities over its acquisition of SCPIE Holdings, a Los Angeles-based medical malpractice company. The U.S. attorney in Los Angeles advised Doctors Co. that it will not proceed further with its investigation, officials from the Napa, Calif.-based privately held company said.
Doctors Co. completed its $281 million acquisition of SCPIE on June 30, after receiving approval from the California Insurance Department. When announcing its approval of the acquisition, the department revealed that federal investigators had opened an inquiry into Doctors Co. and one or more former employees over possible unauthorized access to SCPIEs computer system.
The U.S. attorney also confirmed that no action is planned with respect to any current and/or former employee of the Doctors Co., the company said in a written statement. Doctors Co. now has 43,000 physician members. -- by Rebecca Vesely