Amerigroup Will Pay $4.5M To Settle Sales Reps' OT Action

Law360, New York (March 30, 2012, 3:15 PM EDT) -- Amerigroup Corp. on Friday agreed to pay $4.45 million to settle claims brought by New York-based marketing representatives who accused the health insurer of wrongly denying them compensation for overtime worked. 

In a motion seeking preliminary approval filed in New York federal court, lead plaintiffs Andrea Burch and Hamel Toure said the $4.45 million settlement was a fair resolution for marketing reps who claimed they were improperly classified as exempt from overtime pay.

“While plaintiffs believe that they could ultimately defeat defendants’ defenses and establish liability, this would require significant factual development and favorable outcomes at trial and on appeal, all...

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