Health Net, Inc. announced that it has entered into an agreement with SNTL Litigation Trust, successor-in-interest to Superior National Insurance Group, Inc., to settle all outstanding claims under the Superior National Insurance Group, Inc. v. Foundation Health Corporation, et. al. litigation.
As part of the settlement agreement, Health Net reportedly has agreed to pay the SNTL Litigation Trust $137 million. The settlement amount is expected to be reflected as an extraordinary expense (net of taxes) in the third quarter ended Sept. 30, 2003. Health Net will announce third quarter results on Nov. 4. The settlement includes a full release and complete dismissal of all claims.
The lawsuit, filed on April 28, 2000, relates to the 1998 sale of Business Insurance Group, Inc., a holding company of workers’ compensation insurance companies operating primarily in California, by Foundation Health Corporation to Superior National. As previously disclosed, the Superior National litigation was scheduled for trial in November 2003.
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