CDA shared in February that a federal appeals court denied plaintiffs’ request to review the decision rejecting class certification in ongoing nationwide antitrust litigation against Delta Dental and that, without class certification, dentists would need to file individual lawsuits to pursue recovery from Delta Dental.
In the wake of the federal appeals court decision, individual lawsuits were filed in four states – California, Michigan, Massachusetts and Wisconsin.
The California case, which is being proposed as a class action suit, claims that Delta Dental violated state antitrust laws and the Unfair Business Practices Act. The case is filed in the Los Angeles County Superior Court.
Plaintiffs allege that Delta Dental of California restrained competition in the market of dental goods and services through its agreements with the Delta Dental Plans Association and conspired with other Delta Dental companies across the country to create impermissible territorial restrictions and limit rates paid to providers. Plaintiffs also allege that these territorial restrictions limit choice for both dentists and patients.
“The lawsuit, while not led or funded by CDA, continues to underscore the extent to which the dental plan system is broken,” said CDA President Dr. Robert Hanlon, DMD. “Patients are not provided with meaningful benefits and face barriers to care, while dentistsare subjected to stagnant reimbursement rates and contract provisions that negatively impact their practices.”
CDA will be following the details of the California case closely and will share developments with members in the newsroom, weekly member newsletter and the Dental Plan Action Center as things progress.