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Attorneys Seek Major Payout in Blue Cross Antitrust Case

 |  February 3, 2025

According to Reuters, attorneys representing plaintiffs in a long-running antitrust case against Blue Cross Blue Shield have requested over $754 million in legal fees and expenses from a $2.8 billion settlement fund. The request was submitted to a federal judge in Alabama on Sunday.

Per Reuters, the legal team, led by Joe Whatley and Edith Kallas of Whatley Kallas, is seeking $657.1 million in fees, equivalent to 23.47% of the total settlement amount. Additionally, they are asking for at least $97 million to cover expenses incurred throughout the case, which has spanned more than a decade.

In their statement, Whatley and Kallas emphasized that the percentage they are requesting aligns with the 23.47% fee awarded to another group of plaintiffs’ lawyers, including Boies Schiller Flexner and Hausfeld LLP, in a prior $2.7 billion Blue Cross settlement finalized in 2020.

“Provider Counsel have litigated against the Blues for more than 12 years and spent approximately $100 million in expert and other out of pocket expenses,” Whatley and Kallas said in a statement. The attorneys reported that their legal team has logged more than 373,000 hours on the case, with the requested fee amounting to approximately $1,760 per hour.

Related: US Law Firm Faces Ethical Allegations Over Blue Cross Antitrust Case

The settlement agreement permits plaintiffs’ lawyers to seek up to 25% of the total $2.8 billion in fees, excluding expenses. The agreement aims to resolve allegations that Blue Cross and its affiliates engaged in anti-competitive practices by dividing the country into exclusive regions to avoid competition. According to Reuters, the lawsuit claimed that this alleged arrangement led to increased insurance costs and reduced provider reimbursements. Blue Cross has denied any wrongdoing.

Blue Cross previously settled similar claims regarding overcharging commercial and individual subscribers with a $2.7 billion agreement. That settlement, upheld by the U.S. Supreme Court last year, included a $667 million fee and expense award for law firms led by Boies Schiller and Hausfeld.

Source: Reuters