8th Circ. Tosses $13M Suit Over UnitedHealth Intermediary

Law360, New York (September 21, 2012, 3:43 PM EDT) -- The Eighth Circuit on Friday affirmed a lower court ruling tossing a $13 million suit against a division of UnitedHealth Group Inc. over missed payments from a now-bankrupt intermediary, finding that UnitedHealth is not liable because the subcontractor is not an agent of the health carrier.

New Millennium Consulting Inc. and Pacific Management Systems Inc. entered into supplier contracts with vendor management company Consolidated Hiring Information Management Efficiency System, known as Chimes, which was hired by United HealthCare Services.

After Chimes went bankrupt in 2008, the...
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