Plaintiffs’ Attorneys Retract Efforts to Block Zuckerman Spaeder from Representing Hospitals in Blue Cross Blue Shield Antitrust Case.
Plaintiffs’ attorneys who facilitated the $2.8 billion antitrust settlement with Blue Cross Blue Shield have reversed their decision to prevent the Washington, D.C., law firm Zuckerman Spaeder from advising hospitals to opt out of the agreement and pursue individual lawsuits against the insurer.
In a court filing in Alabama on Thursday, the plaintiffs’ firm Whatley Kallas, along with other legal offices, announced that they would no longer attempt to block Zuckerman Spaeder from representing hospitals that might choose to withdraw from the class-action settlement. The document noted that both parties had come to an agreement, although the specifics of the agreement were not disclosed.
The settlement, which received preliminary approval in December, addresses claims from healthcare providers about underpayment by Blue Cross Blue Shield for reimbursements. Hospitals and other healthcare providers have until March 4 to decide whether to participate in or withdraw from the settlement.
A representative from Zuckerman involved in the case declined to comment beyond what was stated in the joint court filing submitted by both parties. On Friday, Chief U.S. District Judge R. David Proctor in Birmingham approved the request to dismiss the disqualification motion.
Whatley Kallas had previously alleged that Zuckerman improperly used confidential information from related litigation against Blue Cross to secure new business, a claim that Zuckerman has denied. Zuckerman Spaeder was one of several firms pursuing antitrust allegations against Blue Cross, accusing the insurer and its affiliates of colluding to restrict competition, which resulted in higher costs for both commercial and individual subscribers. Last year, the U.S. Supreme Court upheld a $2.7 billion settlement in that case.
Blue Cross Blue Shield has maintained that it did nothing wrong by agreeing to settle the two cases. In class-action settlements, it’s common for a defendant to be able to back out if enough plaintiffs choose not to join, which may lead them to pursue individual lawsuits instead. Whatley Kallas has clarified that the number of opt-outs in the settlement did not influence their attempt to disqualify Zuckerman.
Zuckerman Spaeder LLP is a prestigious law firm based in Washington, D.C. It is well-regarded for its work in complex litigation, including high-stakes civil, criminal, and regulatory matters. The firm has a strong reputation for representing clients in areas such as securities litigation, antitrust law, white-collar criminal defense, and investigations.
The firm’s attorneys have experience working on high-profile cases, and they often represent large corporations, financial institutions, and individuals involved in major legal disputes. Zuckerman Spaeder is known for its strategic approach to litigation, which often focuses on resolving cases before they go to trial, though they are also experienced trial lawyers when litigation becomes necessary.
In addition to its D.C. office, the firm has a presence in New York and Tampa, Florida. Zuckerman Spaeder is noted for handling complex legal challenges across various industries, including healthcare, finance, and technology. Their work often includes defending or prosecuting antitrust claims, as seen in their involvement in the Blue Cross Blue Shield lawsuit related to antitrust violations.
The firm’s clients also include nonprofits and governmental entities, and they handle cases involving commercial litigation, antitrust law, government investigations, and more. They are recognized for their deep expertise and for tackling legal issues involving large-scale systemic matters, making them a prominent player in the legal world.
Related: Blue Cross Blue Shield settles $2.8 billion US health provider class action