A Colorado judge ordered defunct health insurance company Friday Health Plan to pay $450,000 to its co-founder David Pinkert, who sued the company for failing to pay his severance after he was fired in 2022, Law360 reported Jan. 3.
Denver District Judge Martin Egelhoff granted Mr. Pinkert's motion for summary judgment after Friday Health Plans failed to respond to the motion, according to the report.
Mr. Pinkert co-founded the Denver-based company in 2015 and served as COO and secretary. He was terminated in November 2022 without cause, effective Jan. 13, 2023. In a lawsuit filed in June, Mr. Pinkert said his contract with Friday Health included a severance package, which included his annual salary of $300,000 and other benefits.
Friday Health announced in June it was shutting down its business nationwide after several states moved to pause new enrollments or regulate the company's finances.
The company filed a counterclaim against Mr. Pinkert in July, accusing him of engaging in bad faith and negligent conduct that resulted in financial and regulatory issues, according to the report. Friday Health also accused the co-founder of diverting money from the management company to individual subsidiaries. In his September motion for summary judgment, Mr. Pinkert said he had "had no responsibility for financial accounting or reporting as well as no responsibility for treasury or controller functions, which would have governed any intracompany transfers."
The judge also ordered Friday Health to pay Mr. Pinkert's attorney fees and costs.