Oct 23, 2008

Mostly A Win For UNUM

Remember that qui tam (or whistle blower) lawsuit claiming that UNUM was doing something abusive by forcing the people to whom it was paying long term disability benefits to file claims for Social Security disability benefits? It's over and UNUM mostly won. Here are some excerpts from UNUM's press release:
A news release issued this morning by Washington law firm Phillips & Cohen LLP claiming victory in a trial against Unum regarding Social Security Claims is misleading and filled with inaccuracies. [It looks like Philiips & Cohen has taken the press release off its website.] The jury actually sided with Unum on the majority of claims. The two claims that were decided in favor of the plaintiff resulted in a total award of less than $3,000. ...

As part of the trial, Unum produced 1,600 claim files that the plaintiffs then narrowed down to 101 claims that they said should not have been submitted to the Social Security Administration. This number was later reduced to 61 as it was revealed that many of these claims were actually awarded Social Security disability benefits, and in other instances there was no proof that an application was ever made to the government.

To put these numbers in perspective, Unum processed nearly 400,000 disability claims and paid more than $4 billion in disability benefits in 2007. ...

Of the two remaining claims decided in favor of the plaintiff, we continue to believe they have no merit and we think we will ultimately prevail upon appeal, Collins added.

I have no love for UNUM but this lawsuit just seemed ridiculous to me.

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