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WellPoint named a defendant in sexual-battery suit

Healthcare Auditing Weekly, July 3, 2007

One month after it booted Chief Financial Officer David Colby, WellPoint is finding itself in more hot water after being named in a lawsuit that accuses Colby of sexual battery, breach of contract and infliction of emotional distress, the Los Angeles Times reports.

Sarah Waugh, who worked for WellPoint when it was called WellPoint Health Networks Inc. and headquartered in Thousand Oaks, CA, says in the suit that while Colby was the company's CFO, he maintained "concurrent relationships" with her and more than 15 other women and "acted with the intent to cause" her harm.

Waugh seeks unspecified damages for "humiliation, mental anguish and emotional and physical distress." WellPoint, her suit suggests, was aware of Colby's alleged romantic entanglements but did nothing to protect her.

However, these allegations aren't the only troubles facing Colby. Just before he was dismissed, another girlfriend filed suit demanding Colby give her a $4.4 million house as promised.

During his time at WellPoint, now based in Indianapolis, Colby was widely credited with the financial success of the healthcare giant. He earned a salary of $740,000. Two months before his departure, the board gave him the title of vice chairman and stock options then worth $1.7 million. Since June 15, he has sold more than $100 million worth of WellPoint stock, the suit claims.

Visit the Los Angeles Times' Web site to read more on this story.

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