Smith v. United American – Consumer Protection Settlement

Berger Montague and its co-counsel prosecuted and obtained a settlement valued at $30 million in this multistate insurance fraud class action lawsuit against United American Insurance Company, Farm & Ranch Healthcare, Inc., and Heartland Alliance of America Association. The case was litigated in state court in Arkansas and captioned Smith v. Collinsworth, et al., No. CV2004-72-2 (Circuit Court of Saline County, Arkansas).

The plaintiff brought this class action on behalf of current and former United American policyholders in Arkansas, California, Georgia, Louisiana, and Texas, alleging that they were sold limited benefits health policies falsely marketed as the equivalent of major medical coverage. The plaintiff alleged that these policies were bundled with other products, including memberships in preferred provider organizations and term life insurance, that were represented as free but which carried hidden charges. The action sought to recover the losses suffered by policyholders resulting from the defendants’ allegedly fraudulent and deceptive marketing practices, as well as injunctive relief.

Following the certification of a class for trial by the Saline County Circuit Court, which was affirmed on appeal by the defendants to the Supreme Court of Arkansas, the plaintiff reached a settlement with the defendants that provided for additional insurance coverage valued at $30 million plus injunctive relief prohibiting the alleged wrongful conduct.

If you have been the victim of consumer fraud or deceptive business practices, or believe that a company has breached its contract with you or breached its duty of good faith and fair dealing, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.