Shareholders sue insurer Amerigroup
By Jeff Mordock - The Legal Intelligencer (Post-Gazette)
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The plaintiffs allege that Goldman was "hopelessly conflicted" on the transaction because under its agreement with Amerigroup it would receive $233.7 million if the company were sold prior to Aug. 13.
Amerigroup is the 22nd-largest health insurer in the U.S., by premiums collected, according to the National Association of Health Insurers. WellPoint is the second-largest.
The shareholders -- the City of Monroe Employees Retirement System and the Louisiana Municipal Police Employees Retirement System -- filed the lawsuit Aug. 16 in the Delaware Court of Chancery. In addition to Amerigroup -- which is headquartered in Virginia Beach, Va., and incorporated in Delaware -- Goldman Sachs, WellPoint and a subsidiary created for the merger were all named as defendants. Several of Amerigroup's directors were also named as defendants, including Thomas E. Capps, James G. Carlson and Jeffrey B. Child.
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