Law Firm Withdraws Bid to Block Challenges to Blue Cross Blue Shield Settlement

Plaintiffs’ attorneys who secured a $2.8 billion antitrust settlement against Blue Cross Blue Shield have withdrawn their attempt to prevent a Washington, D.C., law firm from advising hospitals to reject the deal and pursue individual lawsuits, according to Reuters.

In a court filing submitted in Alabama on Thursday, the plaintiffs’ firm Whatley Kallas and several other legal teams announced they would no longer seek to bar Zuckerman Spaeder from representing hospitals that might opt out of the class-action settlement. Per Reuters, the filing noted that the parties had reached an agreement, though the terms were not disclosed.

Hospitals and other healthcare providers have until March 4 to decide whether to participate in the settlement, which received preliminary approval in December. The agreement seeks to resolve claims that Blue Cross Blue Shield underpaid healthcare providers for reimbursements.

On Friday, Chief U.S. District Judge R. David Proctor in Birmingham granted the request to drop the disqualification bid, Reuters reported. Whatley Kallas had previously accused Zuckerman of improperly using confidential information from related litigation against Blue Cross to attract clients. Zuckerman Spaeder denied these allegations.

Read more: Attorneys Seek Major Payout in Blue Cross Antitrust Case

Zuckerman is among several firms that pursued antitrust claims against Blue Cross and its affiliates, alleging they conspired to limit competition and overcharge subscribers. The U.S. Supreme Court upheld a separate $2.7 billion settlement last year in a related case. Blue Cross has denied any wrongdoing in agreeing to settle both lawsuits.

Class-action settlements often include provisions allowing defendants to withdraw from an agreement if a significant number of potential plaintiffs opt out in favor of individual lawsuits. According to Reuters, Whatley Kallas stated that its motion to disqualify Zuckerman was not influenced by any opt-out provisions in the settlement.

“As class counsel we want to make sure that the decisions of class members are made based on full and complete information, coming from lawyers who are not conflicted,” the firm previously told Reuters.

The case, formally titled In re: Blue Cross Blue Shield Antitrust Litigation, is being heard in the U.S. District Court for the Northern District of Alabama under case number 2:13-cv-20000-RDP.

Source: Reuters