Pa. Judge OKs Highmark's $1.2B In Profits, Exec Bonuses

Law360, Philadelphia (August 23, 2013, 2:44 PM ET) -- A Pennsylvania state judge has ruled that insurer Highmark Inc. — a nonprofit corporation — did not violate state law by accumulating $1.2 billion in profits in recent years, concluding that it is permitted to invest revenues in profit-making subsidiaries.

In an Aug. 8 order, Philadelphia Court of Common Pleas Judge Patricia McInerney also rejected arguments that the company's payment of large profit-based bonuses to its executives was improper.

“Plaintiffs' argument is logical and compelling. However, the judiciary is not the proper arm of government to...
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