Suit alleges healthcare benefit plan administrators engaged in a fraudulent scheme

By Lhalie Castillo | Nov 27, 2018

BENTON — An employer is suing healthcare benefit plan administrators for allegedly failing to manage and administer the plaintiff's employees' health benefits program. 

Southern Illinois Motor Xpress Inc. filed a complaint on Nov. 9 in the U.S. District Court for the Southern District of Illinois against KG Administrative Services Inc., et al., alleging misrepresentations and breach of duty. 

According to the complaint, the plaintiff alleges the defendants failed to properly process healthcare benefit claims made by more than 20 of the plaintiff's employees in 2016 and 2017. 

As a result of relying on the defendants' expertise and competencies, the plaintiff's employees were victims of a fraudulent scheme and were caused to suffer various damages and losses in an amount exceeding $75,000, the suit states.

The plaintiff requests a trial by jury and seeks fair and reasonable damages, plus costs, attorney's fees, punitive damages and such other and further legal and equitable relief. It is represented by Giles B. Howard of Goldstein and Price in St. Louis.

U.S. District Court for the Southern District of Illinois case number 3:18-cv-02067-SMY-DGW

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Goldstein and Price KG Administrative southern illinois motor xpress

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