A judge issued a temporary restraining order against Anthem Blue Cross late Monday, barring the company from sending a notice to former customers offering them $1,000 to drop all legal claims against the health insurer.

The order by L.A. Superior Court Judge Anthony Mohr stems from a class-action lawsuit filed by the Los Angeles city attorney against the health insurer for allegedly dropping coverage to people who file expensive medical claims.

Anthem Blue Cross reached a settlement with the state Department of Managed Health Care last July that required the insurer to send out offers of new coverage to about 1,700 people who had their policies canceled. The company also offered former customers $1,000 each if they drop all legal claims.

The city attorney argued the $1,000 offer was misleading about the rights plaintiffs would forfeit if they accepted the money, and appealed to the court to stop the company from sending the notices.

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story via SFGate.