December 20, 2019

For Immediate Release:

Settlement includes injunctive relief that ensures Sutter competes on price and quality.

San Francisco, Calif. | December 20, 2019 – The UFCW & Employers Benefit Trust (“UEBT”), on behalf of the certified class of plaintiffs, and the People of the State of California, today sought preliminary approval of a historic, eve-of-trial settlement resolving all claims in their antitrust class action against Sutter Health and its affiliates.

UEBT Chair Jacques Loveall issued the following statement:

“Our settlement with Sutter represents an extraordinary result for working people, their employers, and every Californian who has struggled with the high cost of healthcare.  From the outset, our goal has been to not only achieve justice for the members of the class, but to also put an end to the anticompetitive behavior that has allowed Sutter to charge inflated prices.  Today, we are asking the Court to approve a settlement that delivers on both of these goals.”

“Our case focused on allegations that Sutter has leveraged its market power to insulate its providers from competition on price and quality, thereby allowing it to charge inflated prices.  After five and a half years of litigation, Sutter has agreed to a one-time cash payment of $575 million to resolve the damages claims of the class and the People’s claim for disgorgement.  In addition, Sutter has agreed to comprehensive injunctive relief that will stop the anticompetitive conduct at the heart of this litigation and ensure that Sutter competes on price and quality.”

“It is an honor to represent the union-employer trusts and private and government employers that are members of the class.  We are proud to stand shoulder to shoulder with Attorney General Xavier Becerra and the members of the class in achieving justice and restoring fairness.  This is proof that when we join together, we can achieve great results.”

“This is only the beginning of what we can and will accomplish as a united voice for self-funded payors.”

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Plaintiff Class was represented by the law firms of Pillsbury & Coleman, LLP (San Francisco, CA); Farella Braun + Martel LLP (San Francisco, CA); Cohen Milstein Sellers & Toll PLLC (Washington, DC); Kellogg Hansen Todd Figel & Frederick PLLC (Washington, DC); and McCracken, Stemerman & Holsberry, LLP (San Francisco, CA).Case caption:  UFCW & Employers Benefit Trust, on behalf of itself and all others similarly situated, v. Sutter Health, et al., Case No. CGC-14-538451, pending in the San Francisco Superior Court.

For media inquiries, please contact:  UEBTMedia@msh.law

The full statement can be viewed here.