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 previ
|SOURCE AMERIGROUP Corporation|
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