Northern California health-care provider Sutter Health has settled a long-running lawsuit alleging it charged monopoly prices and forced “all or nothing” contracts to health insurers.
Trial was set to begin Monday, but a Sunday notice in the US District Court for the Northern District of California said the parties “have reached an agreement in principle to settle all individual and class claims.” The parties will file a motion for preliminary approval within 45 days of the notice.
Sutter’s initial trial victory was overturned in June 2024 by the US Court of Appeals for the Ninth Circuit, which also allowed older evidence into a retrial.
The plaintiffs had sought $1.2 billion in damages in the first proceeding. The California attorney general’s office settled its case with similar claims against Sutter Health for $575 million in 2021.
The plaintiffs are represented by Constantine Cannon LLP, Shinder Cantor Lerner LLP and Mehdi Firm. Sutter Health is represented by Jones Day.
The case is Sidibe v. Sutter Health, N.D. Cal., No. 3:12-cv-4854, notice of settlement 3/2/25.
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