EAST ST. LOUIS, Ill. – A lawsuit that could have forced Integrated Health Plan into bankruptcy was settled for $600. Chiropractor Ann Stock and IHP settled after U.S. District Judge David Herndon denied certification as a national class action.
The lawsuit alleged IHP breached a contract with Stock and was filed in Madison County, then removed to federal court. Stock’s attorney, Jeff Millar, said that IHP was one of the top five Preferred Provider Organizations in the country and was able to mount a strong defense. He said that if IHP were forced out of business then it could no longer breach its contracts.
IHP lawyers argued that the cost of a class action notice alone would bankrupt the Florida company. They said IHP offered access to 500,000 providers, but that doesn’t reflect its revenue. Herndon ruled that the case was too complex to certify as a class action, which led to the settlement.