Appeals court voids $30M settlement in Blue Cross case

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DETROIT (AP) – A federal appeals court has voided a $30 million settlement in a class-action lawsuit against Blue Cross Blue Shield of Michigan involving price-fixing allegations.

The 6th Circuit Court of Appeals said Tuesday that key details of the settlement were wrongly sealed and kept hidden from public view. The court says it’s sending the case back to U.S. District Court in Detroit “for an open and vigorous examination of the settlement’s fairness.”

The Detroit Free Press and The Detroit News report Blue Cross says it’s reviewing the decision and hopes to eventually resolve the case.

The settlement had followed allegations Blue Cross pressured more than 60 hospitals into contracts that were preferential to Blue Cross and adverse to competitors. Blue Cross didn’t admit any wrongdoing as part of the now-voided settlement.

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