Health Ministry Affiliate Aliera Put Into Involuntary Bankruptcy

Several members of a health-care cost-sharing service filed an involuntary bankruptcy petition against the Aliera Companies Inc. following court judgments that Aliera sold them faulty, unauthorized health insurance products.

The customers who filed the Chapter 11 case won default judgments totaling roughly $25 million. In November, a federal judge in Kentucky presiding over one of the cases said “Aliera misled the class members into entering contracts for a product that was not what it purported to be and did not comply with applicable federal or state law,” according to papers attached to the bankruptcy petition.

The plaintiffs filed the involuntary ...