NEW YORK, April 26, 2002 (PRIMEZONE) -- On April 24, 2002, Judge Jorge Labarga, Circuit Court Judge for Palm Beach County Florida, issued a final judgment of liability against American Medical Security and United Wisconsin Life Insurance Company, following a trial on the merits brought on behalf of a certified class of more than 11,000 former and current health care subscribers, the law firm of Pomerantz Haudek Block Grossman & Gross LLP, co-trial counsel for plaintiffs, announced today.
In finding AMS liable, the Court concluded that AMS had breached its subscribers' contracts due to its violation of Florida law by improperly taking health factors into account when it canceled coverage for thousands of insureds and issued replacement health care plans, and when it raised premium rates at the annual renewals of its subscribers' policies. While AMS argued that it was exempt from Florida laws and regulations which otherwise would have prohibited its conduct, the Court expressly found that, due to its violation of Florida law governing under what circumstances an out-of-state insurer could be deemed to be exempt, AMS had lost any such exemption.
The trial was on liability only. A trial before a jury on damages is currently set to take place this summer. "We are extremely gratified that the Court has reached this important decision," says D. Brian Hufford, the Pomerantz partner who heads up the firm's health care practice. "The rights of our clients, and, indeed, the entire class of AMS subscribers, have finally been vindicated. We look forward to pursuing the damages to which they are entitled."
The Pomerantz firm specializes in securities, antitrust, health care and ERISA class actions across the country. More information about the firm can be found at its Website, at http://www.pomerantzlaw.com. The firm served as co-counsel in this action with the law firms of Liggio Benrubi & Williams, P.A.; Shapiro, Haber & Urmy LLP; Zebersky Payne & Kushner, P.A.; and Silber & Valente, P.A.
If you have any questions concerning the litigation, please contact D. Brian Hufford of Pomerantz at 888.476.6529 (toll free) or by email at dbhufford@pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.