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WellCare Pays $11M To Settle SEC Fraud Suit

Law360 (May 18, 2009, 12:00 AM EDT) -- Managed care services company WellCare Health Plans Inc. has agreed to pay $11 million to settle a lawsuit by the U.S. Securities and Exchange Commission alleging that the company inflated its earnings by holding on to over $40 million it was obliged to return to the state of Florida under state health benefits programs.

In addition to a $10 million civil penalty and $1 million disgorgement, WellCare has agreed to an injunction barring it from future violations of securities laws, the SEC announced Monday. The SEC...
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