$120-Million Award Against Aetna Stands

Aetna U.S. Healthcare of California Inc., a unit of the biggest U.S. health insurer, failed to overturn a record $120.5-million verdict that was awarded in January to the family of a cancer-stricken policyholder.

The decision by San Bernardino County Superior Court Judge Christopher Warner, who also denied Aetna’s motion for a new trial, came more than a month after the company’s attorneys had challenged the award, saying it was excessive. The damage award was the biggest ever levied against a U.S. health maintenance organization.

“We intend to examine all of our options fully and quickly, and those options would include an appeal,” said Aetna spokeswoman Joyce Oberdorf.

The family of David Goodrich, a San Bernardino County prosecutor, had accused Aetna of wrongfully refusing to pay his medical bills and delaying treatment for his stomach cancer.

In January, a jury awarded the family $4.5 million in medical costs and compensatory damages, and $116 million in punitive damages.

Shares of Aetna Inc., based in Hartford, Conn., rose $1.69 to close at $81.88 on the New York Stock Exchange.