Eleventh Circuit Court of Appeals Affirms Class Certification for RICO Lawsuit Filed by the Nation’s Doctors Against Leading HMOs

Plaintiff’s Lead Counsel Archie Lamb: Largest Physician Led Class Certification in Federal Court History Has Now Been Affirmed

Wednesday September 1, 2004:  The Eleventh Circuit Court of Appeals issued a sweeping decision today affirming class action certification in the landmark RICO case filed to combat widespread and chronic abuses by some of the nation’s largest for profit HMOs. 

In a detailed 70 page opinion the three judge panel noted: “[T]his trial is not about the managed care industry; it is about whether several large

HMOs conspired to systematically underpay doctors. The issue is not whether managed care is wrong, but whether particular managed care companies failed to

live up to their agreements. The plaintiffs are seeking nothing more than the compensatory damages to which they are contractually entitled, and the treble

damages to which they are statutorily entitled.”

The panel went on to note: “[M]ore importantly, however, if their fears are truly justified, the defendants can blame no one but themselves. It would

be unjust to allow corporations to engage in rampant and systematic wrongdoing, and then allow them to avoid a class action because the consequences of being held accountable for their misdeeds would be financially ruinous. We are courts of justice, and can give the defendants only that which they deserve; if they wish special favors such as protection from high—though deserved—verdicts, they must

turn to Congress.”

“This is an unqualified and unprecedented victory for America’s hard working and heroic Physicians. Today’s affirmation helps set the stage for true healthcare reform,” noted Archie Lamb, lead counsel for the over 900,000 physician members of the class. 

“The HMOs have long claimed that the doctors who have made these charges where basing their claims on isolated instances,” Lamb continued.  “This affirmation of class action status once again confirms that the doctor’s charges against the HMOs of fraud and racketeering are consistent around the nation.”

The case is being heard in the United States District Court, Southern District of Florida, Miami Division:  MDL No. 1334; Master File No. 00-1334-MD-Moreno.  Additional background information on the case can be found at: www.hmocrisis.com