UnitedHealth Sued For $25M Over Contract Dispute

Law360, New York (January 16, 2007, 12:00 AM EST) -- TMG Health Inc. filed suit against health care giant UnitedHealth Group Inc. Wednesday, claiming the larger corporation tried to back out of a $5.25 million settlement agreement and asking for $25 million in damages if the court voids the settlement.

Pennsylvania-based TMG signed a contract with another health care provider, Pacificare, to help enroll customers in a new Medicare product in April 2005. Not long after, United acquired Pacificare and made moves to end the contract with TMG.

TMG expected payment for its work, but United...
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