Navigation Links
AMERIGROUP Reaches Agreement in Principle to Settle Illinois Qui Tam Litigation
Date:7/22/2008

VIRGINIA BEACH, Va., July 22 /PRNewswire-FirstCall/ -- AMERIGROUP Corporation (NYSE: AGP) announced today that it has reached a comprehensive settlement agreement in principle that will conclude its civil qui tam litigation relating to certain marketing practices of the Company's former Illinois health plan. The agreement in principle is subject to the completion of definitive settlement documentation by the parties.

In 2007, the Court had entered a judgment against the Company and its Illinois subsidiary of approximately $334 million, plus the fees of the Relator's counsel. Under the terms of the proposed settlement, the Company will pay $225 million to the United States and the State of Illinois, plus approximately $9 million in legal fees, and will not admit any wrongdoing. Additionally, in connection with the settlement, the Company will enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services.

"We are concluding this litigation now to remove a source of significant legal and financial uncertainty for our organization. With this matter resolved, we can concentrate fully on the business at hand -- meeting the healthcare needs of our members and continuing to serve our government partners," said James G. Carlson, AMERIGROUP Chairman and Chief Executive Officer. "Our responsibility to our shareholders, associates, members, providers and government partners is to close this chapter now and move toward the future."

The Company will report a one-time charge for the settlement of approximately $199 million net of the estimated tax benefit, in the second quarter ended June 30, 2008. The Company will pay the settlement from restricted funds previously established to cover costs related to the judgment. Following the payment, which is expected to occur during the third quarter of 2008, the Company's unrestricted cash balance will increase by approximately $117 million due to the release of excess restricted funds. These funds will be available for general corporate purposes. The Company will also be favorably impacted by estimated tax benefits of approximately $35 million.

The Company will provide full-year 2008 earnings guidance in its previously scheduled second quarter earnings release on Wednesday, July 23, 2008.

Unrelated to this case, AMERIGROUP Illinois voluntarily ended its contract with Illinois in 2006 and no longer operates in that State. The Company also has expanded its corporate compliance program significantly to fully ensure compliance with state and federal regulations in its health plans.

About AMERIGROUP Corporation

AMERIGROUP Corporation, headquartered in Virginia Beach, Virginia, improves healthcare access and quality for the financially vulnerable, seniors and people with disabilities by developing innovative managed health services for the public sector. Through its subsidiaries, AMERIGROUP Corporation serves approximately 1.7 million people in Florida, Georgia, Maryland, New Jersey, New Mexico, New York, Ohio, South Carolina, Tennessee, Texas and Virginia. For more information, visit http://www.amerigroupcorp.com.

Forward-Looking Statements

This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the Securities and Exchange Commission's Fair Disclosure Regulation. This release contains certain ''forward-looking'' statements related to the proposed settlement of the qui tam litigation and the terms of such settlement, if any, which are subject to numerous factors, many of which are outside of our control. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. We can give no assurances that any forward-looking statements, including statements regarding the completion of the definitive settlement documentation, the terms of any final settlement, expected unrestricted cash balances or the tax deductibility of the settlement payments, will, in fact, transpire, and, therefore, caution investors not to place undue reliance on them. We specifically disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

CONTACTS:

Investors: Julie Loftus Trudell

Senior Vice President, Investor Relations

AMERIGROUP Corporation

(757) 321-3597

News Media: Kent Jenkins Jr.

Senior Vice President, External Communications

AMERIGROUP Corporation

(757) 769-7859


'/>"/>
SOURCE AMERIGROUP Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. AMERIGROUP Corporation to Present at the CIBC World Markets 18th Annual Healthcare Conference on November 5
2. Advanced Bionics Reaches Resolution With FDA, Settles Financial Suit
3. Exelixis Reaches Agreement with FDA on Special Protocol Assessment for XL184 Phase 3 Trial
4. PAREXEL Reaches Agreement To Acquire ClinPhone
5. BioElectronics Corporation - Substantial International Expansion Producing Sustained Revenue Growth-Company Reaches Monthly Break Even
6. Direct Medical Systems Reaches Profitability in 2-1/2 Years, as a Result of Sales of the Worlds Smallest and Lightest Ultrasound System, the InNovaSound USB Ultrasound.
7. Cure HIV Reaches Out to Foundation Community to Fund LiSAVIOR
8. China Biopharma Reaches Agreement with a Regional Pharma to Launch New Pharmaceutical Products
9. R&D Spending by U.S. Biopharmaceutical Companies Reaches Record $58.8 Billion in 2007
10. Life Sciences Industry Reaches Crossroad Say Noted Pillsbury Attorneys
11. Fralex reaches 100th patient milestone in fibromyalgia study
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/23/2016)... ... May 23, 2016 , ... ... molecular nanotechnology, announced the winners for the 2015 Foresight Institute Feynman Prizes. ... given in two categories, one for experiment and the other for theory in ...
(Date:5/20/2016)... MN (PRWEB) , ... May 20, 2016 , ... Kablooe ... consumer goods companies, today announced its official 25th anniversary of the business. “We have ... are so grateful to our customers for the privilege and honor of serving their ...
(Date:5/19/2016)... ... May 19, 2016 , ... Anton Paar USA, located ... foot office building is complete. The new structure adds a third office building to ... Paar USA purchased 2.4 acres of land, along with office space adjacent to ...
(Date:5/19/2016)... City, KS (PRWEB) , ... May 19, 2016 ... ... biomarker contract research organization (CRO) has welcomed Abu Siddiqui as Director, Large Molecule ... managing and executing biologics, vaccine and translational biomarker discovery studies for preclinical and ...
Breaking Biology Technology:
(Date:3/17/2016)... , March 17, 2016 ABI ... intelligence, forecasts the global biometrics market will reach ... impressive 118% increase from 2015. Consumer electronics, particularly ... embedded fingerprint sensors anticipated to reach two billion ... Dimitrios Pavlakis , Research Analyst at ...
(Date:3/15/2016)... -- Yissum Research Development Company of the Hebrew ... Hebrew University, announced today the formation of Neteera ... human biological indicators. Neteera Technologies has completed its first ... ... emissions from sweat ducts, enables reliable and speedy biometric ...
(Date:3/14/2016)... , Allemagne, March 14, 2016 ... ) - --> - Renvoi : image ... --> --> ... biométriques, fournit de nouveaux lecteurs d,empreintes digitales pour ... de DERMALOG sera utilisé pour produire des cartes ...
Breaking Biology News(10 mins):