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Case ID: 4667 | Credit / Debt | 02/21/2006
Lawyers filed a class action lawsuit was filed on January 31, 2006, on behalf of former members of Anthem Insurance Companies, Inc. ("Anthem Insurance") who received cash compensation in or about December 2001 when Anthem Insurance converted from a mutual to a stock insurance company. The class action lawsuit alleges violations of the Securities Exchange Act of 1934 and Indiana statutes, breach of fiduciary duty and contract, unjust enrichment and negligence. The conversion occurred on November 2, 2001.
The lawsuit is pending in the United States District Court for the Southern District of Indiana, Indianapolis Division. The case has been assigned to Judge David F. Hamilton. The suit alleges Defendants made material misrepresentations and omitted material facts in documents sent to members who approved the conversion. To raise the cash needed to compensate former members for their interests, Anthem stock was sold in an initial public offering ("IPO") on October 30, 2001. Defendants reduced the price at which the IPO shares would be offered in order to sell almost twice as many shares as had been represented would be sold, thus raising almost twice as much cash. Defendants then allegedly took advantage of the cash compensation default mechanism in the Plan of Conversion and prevented hundreds of thousands of members from becoming Anthem shareholders. Defendants allegedly devised the scheme to save costs and avoid complexities associated with a large shareholder population. Since the cash compensation paid to former members was tied to the allegedly depressed IPO share price, all former members who were paid cash are alleged to have received inadequate compensation. In addition, Anthem and Anthem Insurance allegedly misinformed former members that the entire cash compensation was taxable capital gain income. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Credit / Debt Cases of Interest As many as 2.3 million former Sears credit cardholders will receive discount coupons from Sears Holdings Corporation under a settlement filed by the retailer, according to several published reports.
Sears will give discount coupons of $10 to $15 to individuals whose credit data the retailer retrieved after it had closed and sold their accounts, the reports said. The filing reportedly indicates that as many as 2.3 million people may be entitled to participate in the settlement. A statewide class action has been brought in Massachusetts against collection giant, Risk Management Alternatives, Inc. The action is brought on behalf of all Massachusetts residents who, since December 15, 1999, have been subject to alleged unfair collection activities by Risk Management. The action is brought under the federal Fair Debt Collection Practices Act and Massachusetts collection and consumer protection law and is seeking actual, statutory, treble and compensatory damages as well as injunctive and declaratory relief and
disgorgement of profits.
Chevy Chase Bank has settled a seven-year-old class-action lawsuit that could affect hundreds of thousands of credit card holders who say they were charged late fees and excessive interest rates that were not part of their agreements with the bank. A class action has been filed in New York against collection specialists, Global Recovery & A/R Associates, Inc. The action is brought on behalf of all New York residents who received alleged misleading "form" type collection letters from Gobal Recovery. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief. A class action has been filed in Illinois against Worldzen Collection & Recovery, LLC, on behalf of all Illinois residents from whom Worldzen attempted to collect a debt allegedly owed to VMS Chase Providian through the use of a form collection letter. Specifically, the class is composed of those who, since October 28, 2002, received and initial letter indicating that they owed no interest, followed by a second letter asserting that significant interest was due.
Debt collection letters must comply with the federal Fair Debt Collections Act or the collector may find himself or herself owing more than the recipients of the letters. A class action has been certified against municipal debt collector Portnoff Law Associates, Ltd. on behalf of all persons who, between January 1, 2002, and March 31, 2003, received communications from Portnoff relating to municipal claims for water and sewer assessments asserted by the city of Bethlehem. |
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