Judge OKs $310 million settlement in MedPartners lawsuit

BIRMINGHAM, Ala. (AP) – An Alabama judge has given a $130 million settlement final approval, closing a lawsuit by thousands of stock holders against Birmingham-based MedPartners, Inc.

Attorneys for the stock holders say the settlement approved Monday by Jefferson County Judge Pat Ballard is one of the largest in Alabama’s history.

Attorneys for the stock holders argued in 1998 that MedPartners made false and misleading statements about its financial condition. Those suits were settled in 1999. Then in 2003, a new lawsuit alleged that the company and its insurer committed fraud in the 1999 settlement. Lead counsel Scott Powell says stock holders waited more than 12 years to recover their losses.

Attorneys say MedPartners changed its name to Caremark Rx in 2000 and merged with CVS Health in 2007.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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