WellCare says whistleblower withdraws objection to settlement

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(Global Markets) - WellCare Health Plans Inc said a whistleblower withdrew his objection to a proposed $137.5 million settlement in a health care fraud case, paving the way for a deal to end a federal investigation.

In 2010, WellCare agreed to pay $137.5 million to the U.S. Department of Justice and other federal agencies to settle lawsuits accusing the health insurer of overcharging for its Medicaid and Medicare programs.

However, the settlement could not be executed as it was opposed by the whistleblower, which led to a hearing by a U.S. federal court to determine the fairness of the settlement.

In a regulatory filing, WellCare said the whistleblower expects to sign the settlement agreement in a move to dismiss his claims against the company after the Civil Division has given final approval to a pending share award agreement.

Shares of the company were up 4 percent at $69.90 on Friday on the New York Stock Exchange.

(Reporting by Anand Basu in Bangalore; Editing by Gopakumar Warrier)