Cigna Defense Against Shareholder Class Action Reportedly Will End With $93 Million Settlement
A proposed settlement has been reached in a class action lawsuit against Cigna Corp., filed in 2002 and scheduled to go to trial in March 2007 in the United States District Court in Philadelphia. The lawsuit arose from a computer problem that allegedly cost the company one-third of its customers as a result of major problems in the handling of insurance claims. Cigna allegedly hid the problems from investors, and the stock plunged when word of the computer problems hit the street. Defense attorneys and lawyers for the lead plaintiffs – Pennsylvania State Employees’ Retirement System, the Public Employees’ Retirement System of Mississippi, and the City of Miami General Employees’ and Sanitation Employees’ Retirement Trust – agreed to settle the case for payment of $93 million. The proposed class action settlement requires court approval, and a hearing date has been set for next April before United States District Judge Michael Baylson.