Attorneys to ask Stack for initial approval in chiropractor's AIG class action settlement Tuesday

Amelia Flood Jul. 27, 2009, 11:44pm


Madison County Circuit Judge Daniel Stack will be asked to grant preliminary approval to the settlement of a class action suit over improper Preferred Provider Organization (PPO) discounts Tuesday.

Glen Carbon Chiropractor Richard Coy is again a lead plaintiff in the suit against insurer AIG and the National Union Fire Insurance of Pittsburgh. Coy is also one of the lead plaintiffs in a similar PPO claims class actions suit against First Health Insurance Company. The settlement in that case is disputed and a third fairness hearing is set for August.

Stack is presiding over both the cases.

The suit to be heard Tuesday at 1:30 p.m. pits Coy and fellow plaintiffs, Coy Chiropractic Health Center Inc. and Pointe East Physical Rehab, against AIG Claims Services Inc., AIG Marketing as well as National Union over what Coy claims were numerous PPO discounts to which the insurers weren't entitled to.

Coy is suing as class representative on behalf of other healthcare providers.

According to Coy's first amended complaint, Coy and the class were denied the proper reimbursement from claims filed on behalf of patients with AIG property and casualty polices like worker's compensations polices, automobile coverage and other areas.

He alleges that AIG and National Union used improper managed care tactics to reduce the reimbursements.

His suit names grounds of unjust enrichment, the violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, civil conspiracy and breach of contract.

The suit seeks damages of no more than $75,000 for Coy or any individual class member per count of the suit. It also seeks costs and attorneys' fees.

Coy was originally represented by both the LakinChapman firm of Wood River and the firm of Freed and Weiss LLC of Chicago. However, Freed and Weiss withdrew from the suit July 25, 2007. Freed and Weiss claimed that Lakin had wrongfully produced a letter from Coy stating that he only wanted the Lakin firm's representation.

On July 26, 2007, Godfrey attorney Timothy Campbell filed an appearance to represent Coy along with Jeffrey Millar of LakinChapman.

The defendants are all represented by Robert Shultz.

The case is Madison case number 05-L-150.

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