On May 18, 2009, the Commission filed a complaint (the “Complaint”) against Wellcare Health Plans, Inc. (“Wellcare”). The Complaint alleged that, from at least November 2003 to October 2007, Wellcare fraudulently retained over $40 million it was statutorily and contractually obligated to reimburse to agencies of the state of Florida. As a result, Wellcare materially overstated its publicly reported net income and diluted earnings per share in periodic filings made with the Commission throughout this period. Additionally, Wellcare, through the conduct of its officers and employees during the relevant period, executed its scheme by intentionally underpaying refunds it owed to two Florida state health care entities, the Florida Agency for Health Care Administration and the Florida Healthy Kids Corporation. See the Complaint. 

Wellcare was ordered, and has paid, a total of $10,000,001 in disgorgement and civil penalties. See Wellcare’s Final Judgment.

On August 13, 2019, the Court entered an order establishing a Fair Fund for the monies paid by Wellcare and appointed Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund to fulfil the Fair Fund’s tax obligations. See the Court’s Order. 

In a related action, the Commission filed a complaint, on January 9, 2012, against three former executives of Wellcare: Todd Farha (“Farha”), former Chief Executive Officer, Paul Behrens (“Behrens”), former Chief Financial Officer, and Thaddeus Bereday (“Bereday”), former General Counsel, for their role in the Wellcare scheme. See the Complaint. 

Farha, Behrens, and Bereday were ordered to pay a collective total of $21,500,000 in disgorgement, prejudgment interest and civil penalties in their respective orders. See Farha’s Final Judgment, Behrens’ Final Judgment, and Bereday’s Final Judgment. 

On December 09, 2019 the Court issued an Order to Appoint Kurtzman Carson Consultants, LLC (“KCC”) as Distribution Agent for the Fair Fund to assist in overseeing the administration and the distribution of the Fair Fund in coordination with the Commission. See the Court’s Order. 

On June 5, 2020, the Court ordered the Commission to transfer the money paid by Farha, Behrens, and Bereday, together with interest earned thereon, totaling approximately $22,428,079.57 to the Fair Fund established in Wellcare for distribution to harmed investors. See the Court’s Order.

On July 27, 2021, the Commission filed a corrected Distribution Plan (the “Plan”) for the Court’s consideration. The Plan proposed by the Commission governs the distribution of the Fair Fund. See the Wellcare Plan. 

The Plan provides for the distribution of the Fair Fund to investors who purchased WellCare Health Plans, Inc. common stock between August 11, 2004 and October 24, 2007 and suffered a loss as a result of Wellcare’s misconduct described in the Complaint, pursuant to the Plan of Allocation attached as Exhibit A to the Plan.

On August 2, 2021, the Court Ordered a 60 day comment period for interested parties to review the Distribution Plan and submit comments for consideration by the Court. See the Court’s Order. 

On December 21, 2021 the Court entered an Order approving the Plan. See the Court’s Order.

For more information, please contact the Fund Administrator: 

Kurtzman Carson Consultants, LLC
Telephone Number: 866-779-6546 
Email: info@WellCareFairFund.com
Website: wellcarefairfund.com