Quinn Emanuel Urquhart & Sullivan is facing an investigation from two US health insurers regarding certain internal records. The law firm is preparing to seek $185 million in legal fees from a $3.7 billion settlement with the US government. In response, Quinn Emanuel is opposing the effort to review the records. The law firm and lawyers for UnitedHealthcare Inc and Kaiser Foundation Health Plan Inc presented competing proposals in a joint court filing about the upcoming fee fight.
The underlying case involves Quinn Emanuel representing a class of insurers in the US Court of Federal Claims who sued over compensation they said was owed to them under a risk provision of the Affordable Care Act. The health insurers want an accounting of the funds distributed to Quinn Emanuel’s partners before the appeals court ruling. In Tuesday’s filing, Quinn Emanuel told the Federal Claims court that “there is no reason to drag this process out unnecessarily.”
UnitedHealthcare and Kaiser have suggested that about $8 million in fees would be appropriate. This comes after a court in January struck down the $185 million award. A panel of the US Court of Appeals for the Federal Circuit said the lower court had not “adequately” justified the amount.
In a statement, Quinn Emanuel’s Adam Wolfson said the firm was “proud” of its work on an “unprecedented $3.7 billion award” for health plan providers. He said, “The fee agreement the class members agreed to when we began our work on the case should stand.”
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During a hearing last month, Wolfson said there was no order barring the firm from distributing the $185 million fee award before the Federal Circuit’s decision. “We understand that this is a fee application in which the court could order a lower fee award than the original,” Wolfson told US Claims Judge Kathryn Davis. “If and when that happens, according to our obligations as class counsel, we will pay back the amount to the class.”
At the hearing, Sheppard Mullin’s Moe Keshavarzi argued that an accounting was necessary “to make sure that these funds are safe and protected.” The insurance company objectors, Keshavarzi said, also want to see the “judgment preservation insurance” that Quinn Emanuel procured before it distributed the $185 million fee award.
This dispute is the latest flashpoint in Quinn Emanuel’s bid for compensation in the case. The investigation comes after the court overturned the previous $185 million award, citing insufficient justification for the amount. The law firm’s pushback against the investigation signals a willingness to fight for its fees in court, setting up a potential legal battle between the two sides.
While UnitedHealthcare and Kaiser have suggested a much lower fee of $8 million, Quinn Emanuel holds firm on the $185 million fee agreement that the class members agreed to at the start of the case. With both sides presenting competing proposals in a joint court filing, the outcome of the upcoming fee fight remains to be determined.
Overall, the investigation is likely to attract attention from legal professionals as it is a dispute over a significant fee award. With both sides firmly entrenched in their positions, it is unclear how the case will proceed, but it is likely to be closely watched by those in the legal industry.