Jews is set back in pursuit of $18 million severance
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William L. Jews, the former CareFirst BlueCross BlueShield chief executive who was fired in 2006, suffered a setback yesterday in his effort to reinstate his $18 million severance package. The U.S. District Court declined to hear a case in which Jews challenged Maryland Insurance Commissioner Ralph Tyler's decision to cut Jews' benefits to $9 million. Tyler argued that a 2003 state law required executive pay for the nonprofit to meet a "fair and reasonable" standard. Jews brought the lawsuit in August, but U.S. District Court Judge Benson Everett Legg abstained from ruling in the case and then dismissed it. Jews' attorney, Andrew Graham, said Jews had not decided whether to appeal the federal court decision. The second case, being heard in Baltimore County Circuit Court, was put on hold until the federal judge ruled. Graham would not comment on the significance of the ruling. Tyler was not available for comment. Jews' pay drew criticism from state legislators several years ago when he tried to convert CareFirst, the area's largest insurer, into a for-profit entity and sell it to a California company. Jews would have netted millions of dollars, an issue that helped kill the deal. Tyler found that the compensation Jews was to receive was not reasonable given the company's nonprofit status. Jews left the company in 2006 and was supposed to receive his salary for two years because he agreed not to join any competitor of the insurance company.
