Health Net 2011 Annual Report Download - page 57
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resolution of or development in legal and/or regulatory proceedings, including those described above in this
Item 3 under the heading “Litigation and Investigations Related to Unaccounted-for Server Drives,” depending,
in part, upon our financial condition, results of operations, cash flow or liquidity in such period, and our
reputation may be adversely affected. Except for the regulatory and legal proceedings discussed in this Item 3
under the heading “Litigation and Investigations Related to Unaccounted-for Server Drives,” management
believes that the ultimate outcome of any of the regulatory and legal proceedings which are currently pending
against us should not have a material adverse effect on our financial condition, results of operations, cash flow
and liquidity.
Potential Settlements
We regularly evaluate legal proceedings and regulatory matters pending against us, including those
described above in this Item 3, to determine if settlement of such matters would be in the best interests of the
Company and its stockholders. The costs associated with any settlement of the various legal proceedings and
regulatory matters to which we are or may be subject from time to time, including those described above in this
Item 3, could be substantial and, in certain cases, could result in a significant earnings charge in any particular
quarter in which we enter into a settlement agreement and could have a material adverse effect on our financial
condition, results of operations, cash flow and/or liquidity and may affect our reputation.
Item 4. Mine Safety Disclosures.
Not applicable.
55