PHILADELPHIA, Dec. 8, 2006 /PRNewswire-FirstCall/ -- CIGNA announced
today that it has reached an agreement to resolve claims filed in federal
court against the company and certain of its officers in 2002 on behalf of
a class of CIGNA shareholders.
The settlement, which specifies $93 million to be paid to the
plaintiffs and their attorneys, is subject to a definitive written
agreement by the parties and approval by the U.S. District Court for the
Eastern District of Pennsylvania. The settlement is also dependent upon a
certain level of class participation. A fairness hearing before the Court
is expected to be held in April 2007 with final approval expected shortly
thereafter.
"CIGNA agreed to reach this settlement in order to avoid the time and
expense involved in proceeding to trial. It is important to note that,
under the terms of the settlement, CIGNA does not admit to any wrongdoing
by the company or its officers," said CIGNA General Counsel Carol Ann
Petren.
In connection with the agreement, CIGNA Corporation will take a
non-recurring charge in the fourth quarter of 2006 of approximately $25
million after tax. The estimated charge includes certain costs to defend
and is net of expected insurance recoveries.
The charge will be reported as a special item and will not affect the
company's 2006 estimate of consolidated adjusted income from operations
which we have previously estimated at between $995 million to $1.035
billion. Adjusted income from operations excludes special items and
realized investment results. Information is not currently available for
management to reasonably estimate realized investment results or other
special items and therefore management is not able to reasonably estimate
fourth quarter 2006 GAAP net income. Other special items for the fourth
quarter 2006, as previously communicated, could include charges associated
with cost reduction initiatives.
CIGNA Corporation (NYSE: CI), headquartered in Philadelphia, and its
subsidiaries constitute one of the largest publicly owned providers of
health care, disability, life and accident insurance benefits in the United
States and selected markets around the world. Web site:
http://www.cigna.com.
SOURCE CIGNA
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Related links:
http://www.cigna.com
http://www.prnewswire.com/comp/165050.html /
CONTACT:
Wendell Potter, CIGNA, +1-215-761-4450,
Wendell.potter@cigna.com
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