Dispute with woman may have had role in Colby ouster

David Colby’s dealings with a California woman who recently sued him may have played a role in his ouster as WellPoint Inc.’s chief financial officer last Thursday.

Bloomberg reported late Friday that the woman, Rita DiCarlo of Ventura County, Calif., charged in the lawsuit that Colby failed to follow through on a promise to give her a $4.4 million California home.

She filed the suit five days before WellPoint forced out Colby, 53. The company said it asked for and received Colby’s resignation after an investigation by external legal counsel found that he “violated the company’s code of conduct.” WellPoint said the conduct was not illegal and did not relate to the company’s business, but would not elaborate.

Bloomberg said that on the same day the company announced the departure, DiCarlo served a subpoena on WellPoint seeking e-mails and text messages unearthed as part of the company probe of Colby.

Colby relocated to Indianapolis after the December 2004 merger of Indianapolis-based Anthem Inc. and California-based WellPoint Health Networks. As part of the $16.5 billion deal, Anthem adopted the WellPoint moniker. Colby had been CFO of the California company.

According to a copy of DiCarlo’s lawsuit reviewed by Bloomberg, in early 2005 Colby agreed “orally and in writing” to transfer the California house to her “in compensation for consideration provided by plaintiff.” The suit did not describe the consideration.

The 7,500-square-foot home has six bedrooms and 6-½ baths. The Cyberhomes.com Web site estimated its value at $4.4 million.