A federal judge recently ruled in Stone Transport v. BCBSM that Blue Cross Blue Shield of Michigan must release certain financial information establishing the amount of profit earned on the hidden fees it charged the plaintiffs.
Varnum argued that the amount of profit BCBSM earned through its fraudulent program of charging hidden fees is relevant to determining the amount of interest the plaintiffs are entitled to as a part of their damages.
Magistrate Judge Patricia T. Morris agreed, and ruled that Blue Cross’s ill-gotten profit is one permissible method to determine plaintiffs interest rate, and also would ensure that Blue Cross is not “unjustly enriched” through its misconduct.
In 2013, Varnum successfully represented a client against Blue Cross Blue Shield of Michigan in a matter that involved millions of dollars in illegal hidden access fees. The practice was widespread and Varnum has now represented more than 60 clients in similar litigation against BCBSM. These case updates serve as a record of Varnum’s activity on behalf of our clients in these matters.