CLASS ACTION LITIGATION SETTLEMENT AGAINST HEALTH NET
P R E S S R E L E A S E
(For Immediate Publication)
July 24, 2008
Contacts:
Idan Sims
Sims & Associates, Inc.
212 725-3838
917 940-7876
Amy J. Adams, Acting Director of Marketing
Wilentz, Goldman & Spitzer P.A.
(732) 855-6102
aadams@wilentz.com
U.S. Judge Approves $255 Million Settlement in
Class Action Litigation Against Health Net, Inc.
Out of Network Health Insurance Claims of More Than Two Million Class Members Are Eligible for Reimbursement
Newark, NJ, July 24, 2008—U.S. District Court Judge Faith S. Hochberg has approved a $255 million settlement in three class action suits against Health Net, Inc. and several regional subsidiaries involving more than two million people in several states. The suits charge Health Net, Inc. with using a flawed database produced by Ingenix, a subsidiary of United Health Group, to improperly reimburse its members for insurance claims for out of network medical treatment. The class period extends back to 1997.
Health Net, Inc. is charged with violations of the Employee Retirement Income Security Act (ERISA), New Jersey’s employer health plan law, and the U.S. Racketeer Influenced and Corrupt Organizations (RICO) Act by systemically underpaying Health Net Insurance Plan members. By entering into the settlement, Health Net Inc. does not admit liability.
Judge Hochberg of the U. S. Court for the District of New Jersey, in Newark, today gave final approval to the settlement. Under the terms of the settlement, Health Net will pay $215 million to more than two million participants in its health insurance plans who are members of the certified class in addition to making business practice changes valued at $40 million.
The plaintiffs were represented by attorneys Barry M. Epstein, Barbara G. Quackenbos, Lynne M. Kizis and Kevin P. Roddy of the Health Care Class Action Team of the firm Wilentz, Goldman & Spitzer, P.A., with principal offices in Woodbridge, NJ. Co-counsel was Pomerantz Haudek Block Grossman & Gross of New York.
The cases in the settlement approved today by Judge Hochberg are known as Wachtel v. Health Net, McCoy v. Health Net and Scharfman v. Health Net.
Wilentz, Goldman & Spitzer, P.A. is a major law firm with offices in Woodbridge and Eatontown, NJ, Philadelphia and Pittsburgh, PA, and New York City. Founded in 1919 by David T. Wilentz, the firm has been at the forefront of numerous landmark cases and precedent-setting decisions since the time Mr. Wilentz, as New Jersey’s Attorney General, prosecuted the Lindbergh kidnapping.
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