For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Administration May 8, 2003
Wellpoint Sues Aetna, Reveals Possible Merger Plans
August 29, 2001 (PLANSPONSOR.com) - WellPoint Health
Networks is suing managed-care rival Aetna Inc. over the
hiring of a former WellPoint executive and has revealed that
the two companies had considered a merger, according to a
Wall Street Journal report.
Reported by Camilla Klein
In the suit filed in the US District Court for the Southern
District in New York Wellpoint charges that Aetna breached
an August 2000 agreement between the two companies not to
solicit or hire certain of each other?s employees for one
year, according to the report.
According to the complaint, the companies entered into the non-hiring agreement in order to evaluate a possible merger of the healthcare businesses of both companies.
However, Wellpoint charges that Aetna hired Ronald Williams, a senior WellPoint executive, to be Aetna’s operations chief in March this year and accuses Aetna of obtaining confidential and proprietary information concerning WellPoint, including its business plan, from Williams.
According to the report, Wellpoint further charges that Aetna has hired or plans to hire more WellPoint employees who worked for Williams at WellPoint. The suit seeks to prevent Aetna from hiring more WellPoint employees and asks for financial damages.
« Actuary Group: Different Mortality Tables Valid for Pension Calcs