Benefits July 2, 2007

Ex-Wellpoint CFO Hit with Lawsuit

July 2, 2007 (PLANSPONSOR.com) - A former worker at Indianapolis-based insurer Wellpoint has sued the company and former chief financial officer David Colby over allegations she was fired after having an affair with Colby.
Reported by

According to a Business Insurance report, Colby, allegedly had an affair with plaintiff Sarah Waugh while also having relationships with more than 15 other women, including Waugh’s younger sister, Jessica.

The news report said Colby began trying to start a relationship with the plaintiff when she was a 22-year-old assigned to Wellpoint’s corporate offices. Waugh initially declined but later allowed the relationship to start. The lawsuit charged that she was fired after complaining about the situation to her bosses.

After outside inquiries, the company said in May that it had looked into the matter and demanded Colby’s immediate resignation, the lawsuit said.

In addition to the negligence claims, Waugh is suing Colby for sexual battery, intentional infliction of emotional distress and breach of contract for failing to keep promises of financial support.

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