AT&T 'Scheme' With Insurer Violates ERISA, Hospital Says

By Melissa Daniels (June 2, 2016, 7:29 PM EDT) -- A Houston hospital sued AT&T in Texas federal court on Wednesday, accusing the company of violating the Employee Retirement Income Security Act, describing a payment practice between the company's benefits plan and UnitedHealthcare as "an embezzlement scheme" that stiffed the hospital on patient bills.

RedOak Hospital LLC filed a complaint accusing AT&T Inc., AT&T Savings and Security Plan and plan administrator Larry Ruzicka of allowing co-fiduciary and third-party insurer UnitedHealthcare to embezzle funds to compensate it for a trumped-up "overpayments" made by fully insured "stranger plans" funded by United. 

RedOak argues that AT&T violated ERISA by entering into an agreement with...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Attached Documents

Related Sections

Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only


Subscribers Only

Nature of Suit

Subscribers Only


Subscribers Only

Date Filed

Subscribers Only


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!