Employer Must Pay $1.5 Million in Fees for ‘Baseless’ ERISA Suit

A Nebraska farming supply company is responsible for nearly $1.5 million in attorneys’ fees and costs spent by several health care consultants to defend a suit over allegedly low medical reimbursements, a federal court in Nebraska ruled.

Central Valley Ag Cooperative brought meritless claims against four companies involved in administering its health plan, and it changed legal theories throughout the litigation, the U.S. District Court for the District of Nebraska said Thursday.

Central Valley brought a nine-count lawsuit against the plan’s third-party administrator, Benefit Group Inc., its medical billing reviewer, Advanced Medical Pricing Solutions, and others. Central Valley accused the ...