A preliminary settlement hearing in a Madison County class action against insurer AIG will be held Aug. 12 at 1:30 p.m.

The case, brought by Glen Carbon chiropractor Richard Coy, was supposed to be heard July 24 but that hearing was canceled.

Coy, along with Coy Chiropractic Health Clinic Inc. and East Pointe Physical Rehab, claim AIG and National Union Fire Insurance of Pittsburgh took improper Preferred Provider Organization (PPO) discounts from participating health care providers who treated workers' compensation and other claims.

The suit also claims the companies are guilty of unjust enrichment and that PPO participants were deprived of monies they were owed.

The plaintiffs are suing for damages on counts of violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, unjust enrichment, breach of contract and civil conspiracy.

The suit seeks damages of no more than $75,000 per individual class member, costs and attorneys' fees.

The suit is similar to another pending Madison case, Shipley, Coy et. al vs. First Health Insurance Company et. al. That case is also pending. The settlement in the Shipley-Coy case is in limbo as it is disputed by a class member.

Madison County Circuit Judge Daniel Stack presides.

No details of the proposed settlement were available in the court record.

Coy and the class are represented by Jeffrey Millar of Wood River and Timothy Campbell of Godfrey.

AIG and National Union are represented by Robert Shultz.

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

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