Proposed Class-Action Suit Dismissed for Lack of Jurisdiction


In the latest installment of the ongoing case MAO-MSO Recovery II, LLC v. State Farm, (2019 U.S. Dist. LEXIS 204397 (C.D. Ill. Nov. 25, 2019)), the District Court of Illinois resolved the matter on the Defendant’s Motion to Dismiss. The Plaintiffs have attempted to file suit under the Medicare Secondary Payer Act for reimbursement of conditional payment claims paid by Medicare Advantage Plans on behalf of State Farm insureds. Plaintiffs allege that they are the assignees of the recovery rights of various Medicare Advantage Organizations. Following the Plaintiffs’ Second Amended Complaint, the Defendant filed a Motion to Dismiss. The court agreed with the Defendant’s assessment that the Plaintiffs failed to establish that they suffered an injury-in-fact and, therefore, failed to establish standing. The court denied the Plaintiffs’ request to file a Third Amended Complaint, and dismissed the matter for want of jurisdiction.


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