Free Joint Status Report - District Court of Federal Claims - federal

Case 1:06-cv-00147-EJD

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Filed 02/19/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS

WELLPOINT, INC., FORMERLY ANTHEM, INC., SUCCESSOR IN INTEREST TO TRIGON HEALTHCARE, INC., & SUBSIDIARIES, Plaintiff, v. THE UNITED STATES, Defendant.

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No. 06-147 T (Judge Damich)

JOINT STATUS REPORT THE PARTIES, pursuant to an Order of the Court dated August 28, 2006, report the status of the above-captioned case as follows: 1. By Order dated August 28, 2006, the Court ordered the parties to file a

joint status report by the earlier of February 28, 2007, or within 30 days of judgment in WellPoint, Inc. v. Commissioner, No. 13585-5 (Tax Court, filed July 21, 2005) ("the Tax Court Action"). 2. The two primary issues in this case are: (a) The disallowance of a deduction claimed under Section 162 of the

Internal Revenue Code of 1986, as amended, (the "Internal Revenue Code") for a $174,844,000 settlement payment that was paid in the taxable year 1997 by Trigon Insurance Company ("Trigon") (hereinafter referred to as the "Settlement Payment Issue"); and (b) The disallowance of deductions claimed for the taxable years

1996-2002 under Section 165 of the Internal Revenue Code for the loss of certain

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intangible assets including insurance contracts, provider contracts, and employee workforce that were used in Trigon's Blue Cross and Blue Shield insurance business (hereinafter referred to as the "Intangibles Issue"). 3. The Settlement Payment Issue and the Intangibles Issue are pending in the

Tax Court Action. 4. The parties in the Tax Court Action filed a Joint Status Report with the

Tax Court on February 1, 2007 (the "Tax Court Report"). 5. The Tax Court Report anticipates that the parties will be ready to proceed

with trial in the Tax Court Action in the Fall of 2007. 6. The parties continue to be believe that staying this case pending the

outcome of the Tax Court Action is the most time and cost efficient way to proceed. 7. The parties recommend filing an additional Joint Status Report with this

Court in 6 months.

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Respectfully Submitted, s/Philip C. Cook PHILIP C. COOK Alston & Bird One Atlantic Center 1201 West Peachtree Street Atlanta, GA 30309-3424 Telephone: (404) 881-7491 Fax: (4040 881-7777 Counsel for Plaintiff s/W. C. Rapp W. C. RAPP Attorney of Record United States Department of Justice Tax Division Court of Federal Claims Section Post Office Box 26 Ben Franklin Post Office Washington, D.C. 20044 Telephone: (202) 307-0503 Fax: (202) 514-9440 Email: [email protected] Eileen J. O'Connor Assistant Attorney General David Gustafson Chief, Court of Federal Claims Section s/David Gustafson Of Counsel

Of Counsel: Michelle M. Henkel Alston & Bird LLP One Atlantic Center 1201 West Peachtree Street Atlanta, Georgia 30309-3424 Telephone: (404) 881-7633 Fax: (404) 253-8656

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