Health Net Fined in Texas HMO’s Collapse
A Louisiana jury ordered Health Net Inc. to pay $117.4 million in the collapse of a Texas health maintenance organization the company sold in 1999.
Attorneys for the Texas receiver said Woodland Hills-based Health Net allowed AmCareco Inc. to buy the company with the HMO’s own money, leaving the plan insolvent.
Shares of Health Net fell 63 cents to $37.53.
From Bloomberg News
