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Pre-Answer Motion in Federal Court Eliminates Majority of Potential Damages in Billion Dollar Case Against Health System

February 25, 2015

Multiple plaintiffs filed a suit against a major health system and numerous defendants alleging that defendants fraudulently induced patients to undergo useless treatment. Plaintiffs sought treble damages under the Federal RICO and Lanham Acts, as well as counts based on Unjust Enrichment and Fraud. Plaintiffs claimed total damages in excess of one billion dollars. MC&B filed a lengthy pre-answer motion to dismiss these claims on various grounds. The Federal Judge granted our motion dismissing all the dangerous treble damages claims, as well as those alleging Unjust Enrichment and Fraud. Not only did this motion reduce the value of the cases significantly, and into the realm of standard malpractice damages, but by making the motion before service of the Answer, we were able to eliminate significant amounts of discovery. The result greatly reduces the future legal defense costs for the client. The MC&B attorneys who worked on this complicated matter were partners Anthony M. Sola and Nancy J. Block, and associates Christopher J. Obstarczyk, Jennifer M. Feldman, and Jean Hee Park. (Gotlin, United States District Court, Eastern District, Judge I. Leo Glasser. Decision: May 4, 2005)

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