Fairness hearing scheduled in AIG PPO class action case

By Amelia Flood | Nov 3, 2009


A fairness hearing is scheduled in one of the numerous 2005 class action suits filed in Madison County over improper preferred provider organization discounts taken from claims filed by chiropractors and other health care professionals.

The lead plaintiff in the case, Dr. Richard Coy and his chiropractic center, are also lead plaintiffs in other nearly identical class actions cases filed in 2005, including one that has been the subject of several hotly contested fairness hearings.

Coy's case against AIG and its claims and marketing departments, along with National Union Fire Insurance Company of Pittsburgh, has settled and attorneys in the case have asked for a fairness hearing on the settlement. That hearing is scheduled for Nov. 12 at 1:30 p.m., according to an Aug. 12 order signed by Madison County Circuit Judge Daniel Stack.

Stack also is overseeing a nearly identical class action with Coy as a lead plaintiff against First Health Insurance Company.

The settlement of the First Health case has been contested by class member Kathleen Roche of Swansea. To date, Stack has not entered an order approving the First Health settlement.

Details of the AIG settlement were not available in the case's current filings.

According to the first amended complaint in the AIG suit, the company allegedly took improper PPO discounts from workers' compensation and other claims filed by Coy and other health care providers.

The suit seeks damages of not more than $75,000 per class member, attorneys' fees and costs.

Coy has sued on the grounds of unjust enrichment, the violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, civil conspiracy and breach of contract.

Coy and the class are represented by Timothy Campbell and members of LakinChapman LLC. of Wood River.

The defendants are represented by Robert Shultz and others.

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

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