Stack gives initial go-ahead to AIG class settlement

Amelia Flood Aug. 19, 2009, 9:22am



The end may be in sight for a class action suit filed by a Glen Carbon chiropractor who sued AIG on behalf of himself and other health care providers who claim money was wrongly withheld by Preferred Provider Organization (PPO) discounts.

Madison County Circuit Judge Daniel Stack gave preliminary approval to the settlement of Coy v. AIG on Aug. 12. A fairness hearing on the settlement is set for Nov. 12 at 1:30 p.m., according to the court docket.

Details of the settlement were not available.

Lead plaintiff Richard Coy sued AIG and National Union Fire Insurance Company of Pittsburgh for what he claimed were improper claims reimbursements for patients he and other class members saw who held AIG property, casualty or workers' compensation policies.

Coy and fellow plaintiffs Coy Chiropractic Health Center and Pointe East Physical Rehab filed suit against the two insurers as leads in the suit.

The suit alleges that the insurance companies are guilty of unjust enrichment, civil conspiracy, violation of the state's Consumer Fraud and Deceptive Business Practices Act and breach of contract.

The suit seeks damages not to exceed $75,000 per individual class member, costs and attorneys' fees.

The class is represented by Jeffrey Millar of Wood River and Timothy Campbell of Godfrey.

The defendants are represented by Robert Shultz.

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

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