Fairness hearing set for Tuesday in First Health class action settlement
Published: 2009-06-21 16:09:43
Author: Amelia Flood | St. Clair Record | May 22, 2009
A fairness hearing is set for Tuesday to determine whether a charitable contribution of more than $1.2 million is a fair end to a 2004 chiropractor class action suit against an insurance company over claims adjustments.
Granite City chiropractor Lawrence Shipley and Glen Carbon chiropractor Richard Coy settled a class action suit against First Health in Madison County in January.
In the settlement, First Health did not admit to any wrongdoing. It was to give $1.25 million to a charity. The company would pay $650,000 in attorneys' fees and costs to Wood River attorney Brad Lakin's firm and a $10,000 incentive award to the class representatives.
On April 8, Swansea chiropractor Kathleen Roche filed an objection to the settlement. Roche is the lead plaintiff in a competing class action in St. Clair County and is represented by Richard Burke of St. Louis.
Roche argues that the Madison County settlement is "profoundly unfair, unreasonable and inadequate," according to her objection. Roche contends that the settlement does not monetarily compensate class members in light of the fact that the value of the claims in question could total in the hundreds of millions of dollars.
She claims that the charitable contribution is inappropriate.
Full story
Published: 2009-06-21 16:09:43
Author: Amelia Flood | St. Clair Record | May 22, 2009
A fairness hearing is set for Tuesday to determine whether a charitable contribution of more than $1.2 million is a fair end to a 2004 chiropractor class action suit against an insurance company over claims adjustments.
Granite City chiropractor Lawrence Shipley and Glen Carbon chiropractor Richard Coy settled a class action suit against First Health in Madison County in January.
In the settlement, First Health did not admit to any wrongdoing. It was to give $1.25 million to a charity. The company would pay $650,000 in attorneys' fees and costs to Wood River attorney Brad Lakin's firm and a $10,000 incentive award to the class representatives.
On April 8, Swansea chiropractor Kathleen Roche filed an objection to the settlement. Roche is the lead plaintiff in a competing class action in St. Clair County and is represented by Richard Burke of St. Louis.
Roche argues that the Madison County settlement is "profoundly unfair, unreasonable and inadequate," according to her objection. Roche contends that the settlement does not monetarily compensate class members in light of the fact that the value of the claims in question could total in the hundreds of millions of dollars.
She claims that the charitable contribution is inappropriate.
Full story