Opinion ID: 1428164
Heading Depth: 2
Heading Rank: 5

Heading: Appeals to this Court

Text: CareFirst appealed from the District Court's denial of its motion to intervene in the class action, contending that the court erred in determining that it was not a member of the class and therefore lacked standing to object to, or opt out of, the Settlement Agreement. Movants-Appellants all appealed from the same judgment incorporating orders (i) certifying the instant action as a class action, pursuant to FED.R.CIV.P. 23(a) and (b)(3); (ii) approving the amended Settlement Agreement; (iii) awarding legal fees and disbursements; and (iv) severing cases in which the ERISA plans opted out of the settlement. On appeal, we did not reach the merits of the case because we concluded that the threshold question of Article III standing of the settling class Plaintiffs was insufficiently established. Cent. States, 433 F.3d at 185-86, 203. We determined that the District Court had failed to rule on the objections to Plaintiffs' standing raised by the parties and observed that we do not have the benefit of the District Judge's views as to whether the Plaintiffs have demonstrated the requisite injury-in-fact for supporting a finding of constitutional standing. Id. at 200. With respect to the Individual Plaintiffs, we held that: [S]erious questions remain as to whether the Individual Plaintiffs have demonstrated how Medco's alleged wrongdoings caused any injury to any individual or entity other than the Plans that Medco contracted with, and provided prescription benefit coverage to, during the class period. It is especially unclear whether any evidence supports the claim that Medco's drug-switching programs and formulary caused the Individual Plaintiffs  as opposed to the Plans to which they belong  any injury (either by paying more for prescription drugs or by having to take different prescription drugs), given that Plan participants generally pay a flat co-pay for a drug regardless of the cost of the drug. Seemingly, only plan participants who paid percentage coinsurance would incur injury if Medco favored the higher-cost drugs. . . . Similarly, the Individual Plaintiffs appear to have failed to demonstrate (i) that they incurred an injury resulting from Medco's failure to pass along formulary rebates to the Plans; or (ii) that they have been impacted by defendants' allegedly wrongful disclosures or misstatements. Id. at 202-203 (footnote omitted). With respect to Janazzo and the County Line Plan, we determined that: The parties also have raised a considerable question regarding whether the fifth settling plaintiff, Janazzo, a Plan trustee, represents a Plan with Article III standing, given that Janazzo failed to produce a signed, executed contract between the Plan and either Medco or a TPA that contracted with Medco. Moreover, counsel for Medco also stated before the District Court that it could not find any record of Medco sending a bill to County Line Buick [Janazzo's Plan] for drugs. [Medco does not believe] that [Janazzo's Plan is] a client of Medco. In the absence of evidence of a contractual relationship with Medco, Janazzo is precluded from demonstrating any injury resulting from Medco's alleged wrongdoings. Id. at 203 (alterations in original). Accordingly, we remanded to the District Court to resolve the standing issue in any way it deemed proper and retained jurisdiction pursuant to United States v. Jacobson, 15 F.3d 19, 21-22 (2d Cir.1994). Cent. States, 433 F.3d at 203.