Insurer Liable For Hospital's $11M Antitrust Deal: 6th Circ.

Law360, New York (January 17, 2014, 2:53 PM EST) -- The Sixth Circuit on Thursday ordered Federal Insurance Co. to reimburse a Michigan hospital for much of an $11 million settlement with nurses who alleged wage suppression in an antitrust class action, finding that compensation for unpaid wages isn’t the same as disgorgement of ill-gotten gains.

In a 14-page decision, judges agreed with Detroit-area William Beaumont Hospital that failing to hand over wages is different from illicitly acquiring wages. As a result, the hospital’s settlement does not trigger an exception in an insurance policy that would...
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