DOW JONES NEWSWIRES Coventry Health Care Inc. (CVH) disclosed a $262 million judgment has been affirmed against its First Health workers' compensation unit, a decision which will result in the health insurer taking a big second-quarter charge and posting a quarterly loss. The decision by a Louisiana appeals court affirms a class-action summary judgment against Firth Health for alleged violations of state law regarding the payment of services to injured workers with workers' compensation claims. Coventry said Friday it will appeal further, saying it doesn't believe "the decision is supported by the facts or the law." Still, the company will record a $278 million, or $1.18 a share, charge in the second quarter. On average, analysts were expecting earnings of 49 cents; such estimates from Thomson Reuters typically exclude such charges. The managed-care company's profit has been beating analysts' expectations in the past several quarters and it raised 2010 guidance in April. At that time, it said earnings more than doubled on gains from a discontinued Medicare offering and lower medical costs. In April, Moody's Investors Service boosted its ratings outlook on the company to stable, saying it believes its results will improve after it shed its unprofitable divisions and due to renewed focus on its core business. The company plans to report second-quarter results on July 26. Shares were up 1.8% in recent trading to $17.50. The stock has fallen 28% this year. -By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com;
