Exhibit 99.1
Exhibit
99.1
FOR
IMMEDIATE RELEASE
CONTACT:
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Wendell
Potter, 215.761.4450
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Wendell.potter@cigna.com
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CIGNA
Reaches Agreement In A 2002 Securities Class Action Suit
PHILADELPHIA,
December 8, 2006—CIGNA
announced today that it has reached an agreement to resolve claims filed in
federal court against the company and certain of its officers in 2002 on behalf
of a class of CIGNA shareholders.
The
settlement, which specifies $93 million to be paid to the plaintiffs and their
attorneys, is subject to a definitive written agreement by the parties and
approval by the U.S. District Court for the Eastern District of Pennsylvania.
The settlement is also dependent upon a certain level of class participation.
A
fairness hearing before the Court is expected to be held in April 2007 with
final approval expected shortly thereafter.
“CIGNA
agreed to reach this settlement in order to avoid the time and expense involved
in proceeding to trial. It is important to note that, under the terms of the
settlement, CIGNA does not admit to any wrongdoing by the company or its
officers,” said CIGNA General Counsel Carol Ann Petren.
In
connection with the agreement, CIGNA Corporation will take a non-recurring
charge in the fourth quarter of 2006 of approximately $25 million after tax.
The
estimated charge includes certain costs to defend and is net of expected
insurance recoveries.
The
charge will be reported as a special item and will not affect the company’s 2006
estimate of consolidated adjusted income from operations which we have
previously estimated at between $995 million to $1.035 billion. Adjusted income
from operations excludes special items and realized investment results.
Information is not currently available for management to reasonably estimate
realized investment results or other special items and therefore management
is
not able to reasonably estimate fourth quarter 2006 GAAP net income. Other
special items for the fourth quarter 2006, as previously communicated, could
include charges associated with cost reduction initiatives.
CIGNA
Corporation (NYSE: CI), headquartered in Philadelphia, and its subsidiaries
constitute one of the largest publicly-owned providers of health care,
disability, life and accident insurance benefits in the United States and
selected markets around the world. Web site: http://www.cigna.com.
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