In the latest twist of a long-running legal saga, lawyers representing plaintiffs in the $2.8 billion Blue Cross Blue Shield antitrust class action have submitted a request for $754 million in legal fees and expenses. This request, made to a federal judge in Alabama, marks a significant development in a case that has stretched for over a decade.
The legal team, spearheaded by Joe Whatley and Edith Kallas of Whatley Kallas, is asking for $657.1 million in legal fees, which represents 23.47% of the total settlement amount. Additionally, they have sought at least $97 million for various expenses incurred during the lengthy litigation process. Their fee request mirrors a previous settlement, where a different group of plaintiffs’ lawyers received the same percentage of the settlement fund in a similar 2020 case against Blue Cross.
“After 12 years of litigation, involving around $100 million in expert and other expenses, this fee request reflects the scale of the work done,” Whatley and Kallas stated.
According to the court filings, the legal team has logged more than 373,000 hours working on the case, bringing the requested fee to about $1,760 per hour. The request is in line with the terms of the settlement, which allows for up to 25% of the $2.8 billion settlement to be allocated for legal fees, excluding expenses.
The class action settlement would resolve accusations that Blue Cross and its affiliates engaged in anti-competitive practices by dividing the U.S. into regions where they would not compete, raising insurance costs and reducing reimbursements for healthcare providers. While Blue Cross has denied any wrongdoing, this settlement is part of a broader series of cases involving similar claims, including a $2.7 billion settlement resolved earlier and upheld by the U.S. Supreme Court last year.
As of now, Blue Cross has not publicly commented on the latest fee request.