People ex rel. Madigan v. Carle Clinic Association, P.C., No. 07h115 (Champaign Cty. 6th Jud. Dist. 2007)
State alleged two clinics conspired to boycott Medicaid patients by adopting identical policies through which they refused to accept Medicaid patients: (1) who were not already registered with the clinic or (2) who had not seen a clinic physician for at least three
years. They allegedly sought to increase the Medicaid reimbursement rates and to accelerate reimbursement payments from the State of Illinois. Settlement reached in which Carle will increase Medicaid patient load and pay local health centers who had to treat more patients because of the policies. In April 2009, Christie Clinic settled with the state, agreeing to increase the number of Medicaid patients it will accept for primary health care services to 8,500 over the next
three years; will not deny Medicaid patients primary care services because of existing medical debt incurred from March 2003 through September 2007 – the period during which these patients were turned away as qualified Medicaid patients and were charged for health care services; and wil pay, over three years, $120,000 to Frances Nelson Health Center to help fund its primary care services for low-income patients
and $34,000 to the Champaign Urbana Public Health District to help pay for its dental program for low-income children. Both Christie and Carle Clinics are committed to accept more than 17,000 Medicaid patients in the intial year, growing to 20,000 over the next three years.
State of Colorado et al v. Warner Chilcott, 1:05-cv-02182 (D.D.C.2005)
34 states filed suit alleging that Warner Chilcott entered into an illegal agreement with Barr Pharmaceuticals to raise the prices of Ovcon, an oral contraceptive. The lawsuit alleged that after Barr Pharmaceuticals publicly announced that it planned to have a generic version of Ovcon on the market by the end of the year, Warner Chilcott paid Barr Pharmaceuticals $1 million for an agreement designed to prevent Barr’s generic product from coming to market. Under the terms of the alleged agreement, once Barr received FDA approval to market generic Ovcon, Warner Chilcott had 90 days to pay Barr $19 million, after which Barr would refuse to bring the cheaper generic version to the market. The lawsuit alleged that as a result of the agreement, Warner Chilcott paid Barr a total of $20 million to keep it from marketing its generic version of Ovcon. In additon to a payment of $5.5 million, the settlement prohibits Warner Chilcott, for ten years, from entering into any agreement that would have the effect of limiting the research, development, manufacture, or sale of a generic alternative to one of its drugs. Furthermore, Warner Chilcott must provide the states notice of certain agreements it has entered into with generic manufacturers, and must continue to make its records available to the states for inspection to determine whether the company is complying with the terms of the agreement.
Illinois v. Acordia (Cook County Circuit Court)
State alleged that insurance companies were paying kickbacks to Acordia, an insurance broker, for steering business to the insurer.
Connecticut, Illinois & New York v. St. Paul Travelers
Plaintiff states charged St. Paul Travelers with illegal business steering, customer allocation, and bid rigging in the market for small business. The states alleged, and St. Paul Travelers did not deny, that millions of dollars in “contingent commissions” were paid to a number of brokers who “steered” business to St. Paul Travelers. Under the customer allocation scheme, Travelers was one of the insurers (with The Hartford and CNA) who secretly agreed with a broker to divide up the brokers small business customers in exchange for paying greater undisclosed contingent commissions to the broker.
Ilinois v. Liberty Mutual Insurance Company
The state of Illinois alleged that Liberty Mutual particiated in scheme led by Marsh McLennan to rig bids on insurance policies and distribute policies to particpating insurers, who would submit high bids when directed to do so. The State also alleged that Liberty Mutual paid undisclosed contingent commissions (payments on top of regular commissions)to insurance brokers and agents to induce them to steer business to Liberty Mutual.
In the Matter of ACE Ltd. and ACE Group Holdings, Inc.
ACE Ltd., an insurance broker, allegedly participated in bid-rigging schemes with Marsh McLennan and other borkers in which they provided sham bids tocustomers. ACE agreed to pay $80 milion in restitution and penalties, and to adopt a series of significant reforms of its business practices
In the Matter of Zurich Holding Co. of America, Inc. and Zurich American Insurance Co.
Zurich agreed to an Assurance of Discontinuance to resolve claims of bid-rigging and sham bidding. Under the AOD, Zurich paid $88 million to policy holders, $39 million to New York and $13 million each to Connecticut and Illinois.
Illinois ex rel. Madigan v. Daicel Chemical Industries, Ltd., No. 02CH19575 (Cir. Ct. Cook Cty IL)
Plaintiff State sued five sorbates manufacturers, alleging price fixing. Case settled with cy pres distribution of $1.6 million to nutrition and fitness programs at financially disadvantaged schools.
U.S. Illinois, and Missouri v. Allied Waste Industries, Inc.
States of Missouri and Illinois joined in United States Department of Justice action to enjoin acquisition or to remedy anticompetitive effects from proposed acquisition by waste hauler.
U.S. v. Sony Corporation of America, 1998 U.S. Dist. LEXIS 20815, 2000-1 Trade Cas. (CCH) 72,787 (S.D.N.Y. 1998)
U.S. and the States sought to enjoin Loews Theatres, Inc. (Loews) and Cineplex from consummating their merger, arguing that the merger would significantly impair competition in first screening movie theaters.
