BOSTON (Legal Newsline) – An insurance company alleges a dialysis business operated an illegal profiteering scheme.
UnitedHealthcare Insurance Co. and United HealthCare Services Inc. filed a complaint on March 30 in the U.S. District Court for the District of Massachusetts against American Renal Associates LLC and American Renal Management LLC alleging fraud, negligent misrepresentation and other counts.
According to the complaint, the plaintiffs allege that for the past several years, their customers and members "have been targeted and injured by an unfair, deceptive, and illegal profiteering scheme allegedly orchestrated by" American Renal Associates.
The plaintiffs allege in an effort to "increase profits and commercial mix, ARA orchestrated a multi-faceted scheme that targeted individuals (called 'members') insured under United’s commercial Employer Group Health Plans ('EGHPs') and COBRA plans as profit centers that could be used to grow ARA’s commercial mix, illegally increase revenues and profits, and inflate the company’s IPO price," the suit states.
The plaintiffs holds American Renal Associates LLC and American Renal Management LLC responsible because American Renal Management allegedly knowingly and willfully executed a scheme to defraud United by submitting fraudulent claims for dialysis services rendered to United members.
The plaintiffs request a trial by jury and seek award of compensatory and punitive damages, declaratory and injunctive relief, attorneys' fees, costs of court, pre- and post-judgment interest, and an award of any other relief in law or equity that the court deems just and proper. They are represented by Jeffrey S. Gleason of Robins Kaplan LLP in Minneapolis.
U.S. District Court for the District of Massachusetts case number 1:18-cv-10622-ADB