Blue Cross Settlement Sparks Legal Fee Fever: Will Lawyers Claim $700 Million?

The lawsuit brings to light additional issues about competition and cost in the healthcare industry, while BCBS continues to deny any wrongdoing

In a notable development, plaintiffs' attorneys are requesting $700 million in legal fees from the $2.8 billion antitrust settlement against Blue Cross Blue Shield (BCBS). The class-action case, which has been pending for more than ten years, challenges BCBS for allegedly engaging in anticompetitive business activities. The deal, which is pending court approval, attempts to provide healthcare providers more contracting options and encourage openness in the sector.

In addition to the hundreds of millions previously awarded in the lawsuit, lead attorneys Joe Whatley and Edith Kallas contend that the fee request is justified by their joint 12-year efforts. The lawsuit brings to light additional issues about competition and cost in the healthcare industry, while BCBS continues to deny any wrongdoing. It is still unclear if the court will grant the fee request, particularly in light of recent decreases in court awards in other well-known cases. For instance, in a different lawsuit regarding the Affordable Care Act, Quinn Emanuel Urquhart & Sullivan recently had its fees cut in half, from $185 million to $92.4 million.

There are concerns over future market pricing and competition as it is unclear how the settlement would affect customers' healthcare bills. The decision might set a benchmark for future large-scale antitrust lawsuits regarding legal expenses.