Summary
Elevance Health, Inc. (then operating as WellPoint, Inc.) filed this 8-K report on June 15, 2012, to disclose a significant event related to ongoing litigation and its impact on financial guidance. The company announced its expectation to make an estimated non-tax deductible payment of approximately $90 million in 2012 to resolve the "Ormond Litigation," which stems from claims related to the 2001 demutualization of Anthem Insurance Companies, Inc. and its subsequent IPO. This litigation resolution has led WellPoint to revise its full-year 2012 earnings per share (EPS) guidance. The company now anticipates EPS to be at least $7.57, which includes net investment gains of $0.19 per share recognized in the first quarter of 2012. Importantly, this revised guidance does not incorporate any further investment gains or losses beyond what was already recorded in Q1 2012. The company indicated that its officers would be reaffirming this guidance during upcoming meetings with securities analysts and investors.
Key Highlights
- 1WellPoint, Inc. (now Elevance Health) expects to pay approximately $90 million in 2012 to resolve the "Ormond Litigation."
- 2The litigation concerns claims related to the 2001 demutualization of Anthem Insurance Companies, Inc. and its IPO.
- 3The expected litigation settlement is a non-tax deductible payment.
- 4Full-year 2012 EPS guidance has been revised to at least $7.57 per share.
- 5The revised guidance includes $0.19 per share in net investment gains from Q1 2012.
- 6The guidance does not include any further investment gains or losses beyond those already recorded in Q1 2012.
- 7Company officers are scheduled to reaffirm this revised guidance to analysts and investors between June 18 and June 29, 2012.