What happened: Georgia’s appeals court reversed the dismissal of the insurance commissioner’s claims to recover $21 million from a Delaware entity.
Who’s involved: Georgia Insurance Commissioner, Friday Health Plans of Georgia (insolvent HMO), FHP-ABC (Delaware assignee).
What’s at stake: $21 million in allegedly improper advance payments and $35 million in unpaid vendor debt.
Why it matters: The ruling confirms state liquidation statutes carry independent jurisdictional force - moving incorporation to another state may not shield assets from regulators.
Where it stands: Remanded to trial court; reconsideration window open until approximately November 13, 2026.
An HMO collapsed in Georgia owing $35 million in debt. The money, according to the state’s insurance commissioner, had already left the building.
Georgia’s Court of Appeals has reversed a trial court’s decision to throw out the commissioner’s lawsuit to recover $21 million allegedly drained from Friday Health Plans of Georgia before it went into liquidation. The November 3 ruling restored every claim against the Delaware entity that ended up holding the assets.
FHP-GA was a health maintenance organization wholly owned by FHP...