Coventry Health Care is taking a $262 million charge to end a class-action suit filed in Louisiana over workers’ compensation claims.

The Bethesda, Md.-based health insurer said the Third Circuit Court of Appeals in Louisiana affirmed a trial court’s decision granting summary judgment against First Health Group Corp., a wholly owned subsidiary of the insurer.

The suit involves claims of alleged violations of notice provisions of Louisiana’s Any Willing Provider Act in connection with providers providing services to injured workers with workers’ compensation claims.

Coventry said it will incur a non-recurring pre-tax charge to its second-quarter earnings of $278 million.

In a statement, Coventry said it “does not believe the decision is supported by the facts or the law and intends to file a motion for rehearing and explore other avenues of appeal. The company believes that it has available resources to pay any final unappealable judgment in this litigation.”