Overview

• The U.S. District Court granted initial approval to the $228.5 million class action settlement on May 22 after both sides agreed to avoid further litigation.
• The settlement follows the Ninth Circuit’s 2024 reversal of a 2022 jury verdict that had sided with Sutter Health.
• Plaintiffs allege that Sutter Health’s contract terms forced insurers to overpay for services and drove up premiums, a claim the health system denies.
• Notices have been mailed to individuals and businesses who paid premiums on fully insured plans from Aetna, Anthem Blue Cross, Blue Shield of California, Health Net or UnitedHealthcare in specified Northern California counties between January 2011 and March 2021.
• A fairness hearing is scheduled for Nov. 6 to decide on final approval, after which net proceeds will be allocated under a court-approved distribution plan.