A federal judge will allow WellCare Health Plans, Tampa, Fla., to sue three of former top executives for breach of duty and breach of contract, the company said.
WellCare can sue former execs, judge says
The litigation began as a cluster of shareholder lawsuits against former Chairman, President and CEO Todd Farha; former Chief Financial Officer Paul Behrens; former general counsel Thad Bereday; and several of the company’s current and former directors. The U.S. District Court in Tampa approved a partial settlement in the consolidated case that dismisses the claims against the directors and allowed WellCare to become a plaintiff and go after its former executives.
“WellCare can now pursue its claims and hold these former executives accountable for their conduct,” Senior Vice President, General Counsel and Secretary Timothy Susanin said in a news release.
Late last year a special committee formed by the company’s board concluded that the directors should not be held responsible for decisions that caused the company to become ensnared in a variety of state and federal investigations, an FBI raid on its headquarters and an $80 million payment under a deferred prosecution agreement with the Florida attorney general.
Just last week, responding to allegations unveiled in a newly unsealed whistle-blower lawsuit, Florida Agency for Health Care Administration Secretary Thomas Arnold asked the attorney general to investigate and pursue criminal charges against the company’s former executives.
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