TriZetto Suit Results in $3.9-Million Settlement
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TriZetto Group Inc. said Thursday it agreed to a $3.9-million settlement with former customer Maxicare Health Plans Inc., a long-troubled health maintenance organization that filed for Chapter 11 bankruptcy protection in May.
Under the settlement agreement, TriZetto will receive $1 million in cash for services provided in 2001 after Maxicare’s bankruptcy filing, and $2.9 million to cover a reduced level of data-center operations and software support in 2002.
Newport Beach-based TriZetto provides computer software and services to the health-care industry. In 2000, TriZetto received a seven-year contract worth more than $55 million from Maxicare. A TriZetto spokeswoman said Maxicare was one of its top customers in 2000, accounting for about 5% of the company’s total revenue.
For 2001, TriZetto lost $61.2 million, or $1.53 a share, on revenue of $218.2 million.
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