Illinois Attorney General Lisa Madigan will refile a class-action lawsuit by October 11 against 11 companies that operate MRI centers in the Chicago area after a circuit court judge temporarily derailed the case, saying he needs more details.
The attorney general alleges that the companies illegally paid doctors for patient referrals for MRI scans through what the lawsuit described as "sham lease agreements." The companies then allegedly filed false claims with private insurers and patients.
The Chicago Tribune reported yesterday that Cook County Circuit Court Judge Peter Flynn ruled that he needed more details on the allegations against each defendant. Madigan's office asserted that Flynn's ruling had nothing to do with the merits of the state's case.
MIDI, the parent company of Open Advanced MRI, which has 13 clinics in the Chicago area, was pleased with the judge's action. The newspaper quoted attorney Steven Miller of Reed Smith as saying "the allegations made by the state could be interpreted as completely innocent conduct." He asserted that the suit is based "on sweeping generalizations with virtually no concrete detail."
By AuntMinnie.com staff writers
September 14, 2007
Related Reading
Illinois AG dishes dirt on 'sham' MRI leasing deals, May 17, 2007
Illinois AG's lawsuit may chill equipment leasing deals, January 24, 2007
Illinois AG joins leasing suit against MRI centers, January 18, 2007
Copyright © 2007 AuntMinnie.com
