Weil, Gotshal & Manges LLP

UnitedHealth and Weil Gotshal Fight For and Achieve Complete Victory

(June 21, 2006, Weil Gotshal Press Release)


New York, June 21, 2006 - In one of the largest multi-district litigations in the country, spanning seven years and involving the largest names in the managed care industry, Weil Gotshal successfully obtained a complete victory for long-time client UnitedHealth Group. Weil Gotshal defended the company in an action based on alleged claims of industry-wide fraud and conspiracy among managed care companies to underpay physicians.

The class action, which began in 1999, was initiated by more than 600,000 US physicians who claimed that the country’s biggest managed care companies had unfairly cut reimbursements owed to them. The physicians alleged that the companies conspired to deprive them of full payment for medical services rendered by using claims-reimbursement software systems that often reduced the physicians’ bills. UnitedHealth argued that the claims were paid properly and based solely on the company’s own proprietary claims software system.

The litigation was heard at the district and appellate court levels, and UnitedHealth also successfully sought US Supreme Court review of one aspect of the case pertaining to the scope of arbitration clauses in the operative contracts. Additionally, as the litigation progressed, most of the other defendants named in the action chose to settle rather than fight the allegations - paying hundreds of millions of dollars in settlement fees as a result. The action culminated with the US District Court in Miami granting UnitedHealth’s summary judgment motion, finding that plaintiffs could not demonstrate any wrongdoing on the part of UnitedHealth, and dismissing all claims against the company.

The win highlights UnitedHealth's perseverance, and vindicates the case strategy of refusing to back down and being willing to go to trial if necessary. Additionally, the victory underscores Weil Gotshal’s ability to seamlessly coordinate a defense that involved litigators in multiple offices and across multiple disciplines.

The Weil Gotshal team was led by partners James W. Quinn, Jeffrey S. Klein and Edward Soto.

About Weil, Gotshal & Manges

Weil, Gotshal & Manges is an international law firm of over 1,200 lawyers, including 300 partners. Weil Gotshal is headquartered in New York, with 20 offices in Austin, Boston, Brussels, Budapest, Dallas, Frankfurt, Houston, London, Miami, Munich, New York, Paris, Prague, Providence, Silicon Valley, Singapore, Shanghai, Warsaw, Washington DC and Wilmington.
   
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