Nonprofits Escape Calif. Junk Insurance Claims

Law360, Los Angeles (August 26, 2011, 5:45 PM EDT) -- A California state judge on Friday threw out the government’s claims against the National Association for the Self-Employed and two other nonprofits for an alleged fraudulent scheme by HealthMarkets Inc. to sell junk insurance to consumers.

“Just tell the story with a little more clarity, and then we’ll see if we’ve got anything,” Judge Anthony Mohr told attorneys for the Los Angeles City Attorney’s Office before dismissing the claims and granting the government leave to amend its complaint.

The ruling in favor of NASE, the Alliance...
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