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WellPoint Says CFO Ouster a 'Personnel Matter'

The ouster of WellPoint's Chief Financial Officer David Colby last month was a "personnel matter" unrelated to the health insurer's performance or financial condition, a WellPoint spokeswoman said on Tuesday.

"We did an investigation performed by external legal counsel," spokeswoman Shannon Troughton said. "Just days after we learned of the concerns, and as soon as the exteral investigation was completed, it was concluded that David Colby had violated the company's code of conduct."

Earlier, the Wall Street Journal reported that Colby's ouster followed revelations of tangled personal relationships. Colby was conducting an affair with at least one former employee from WellPoint Health Networks, the predecessor company to WellPoint, the Journal reported in its online edition on Tuesday.

The Indianapolis-based company is the biggest U.S. health insurer.

WellPoint said on May 31 it ousted Colby and replaced him with Wayne DeVeydt. At the time, it cited violations of its code of conduct, and said the allegations were not related to the company's business, and that Colby's conduct was not illegal.

Asked what the violations entailed, Troughton said, "We are not commenting given the non-business nature of the relationships. The violations were in no way related to company's performance or financial condition."

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