Delta Dental Allocation of Territories Antitrust Class Action

This antitrust class action brings suit against Delta Dental Plan Association (DDPA), Delta Dental Insurance Company (DDIC), and a long list of related companies. The complaint alleges that the defendants “are independent companies who have agreed with each other to allocate markets into geographic areas in which they agree not to compete.” According to the complaint, this suppresses competition and is a violation of the Sherman Act.

DDPA says that Delta Dental is the “leading provider of dental insurance” in the US, with over 80 million insureds in all fifty states and in US territories.

But the complaint claims that “territorial allocations among actual or potential competitors are per se violations of Sections 1 and 3 of the Sherman Act. Horizontal market allocations between competitors lower output and raise prices…”

The complaint takes note of a recent court decision “finding the analogous territorial restrictions agreed to by members of the Blue Cross Blue Shield Association (‘BCBSA’) to be per se violations of the Sherman Act.”

Also, the California Dental Association brought suit against DDPA after its 2011 proposal to lower compensation to dentists. This case was settled in 2015 for over $65 million.

Finally, the Washington State Dental Association filed a complaint with the state’s Attorney General Office, alleging illegal practices, and complaining about the 2011 rate cut. The organization’s website claimed, “While the company dramatically reduced reimbursements to dentists, it appears Delta retained the bulk of its savings for its corporate benefit, rather than passing these savings along to the dental patients covered by its plans.” The statement on the website also alleged that consumers were losing access to dental care as well as the benefits of innovations, such as digital x-rays.

Three classes have been proposed for this action.

  • The Nationwide Class is all Delta Dental Providers, not owned or employed by any of the Defendants in this case, that provide dental goods or services to Delta Dental insureds under a Delta Dental insurance policy within the US and its territories.
  • The Nationwide Treble Damages Class is all Delta Dental providers, not owned or employed by any of the Defendants in this case, that provided dental goods or services to a Delta Dental insured under a Delta Dental insurance policy within the US and its territories, between July 1, 2016 and the present.
  • The alternative Alabama Treble Damages Class is all Delta Dental providers in Alabama, not owned or employed by any of the Defendants in this case, that provided dental goods or services to a Delta Dental insured under a Delta Dental insurance policy in Alabama, between July 1, 2016 and the present.
Article Type: Lawsuit
Topic: Antitrust

Most Recent Case Event

Delta Dental Allocation of Territories Antitrust Complaint

July 1, 2020

This antitrust class action brings suit against Delta Dental Plan Association (DDPA), Delta Dental Insurance Company (DDIC), and a long list of related companies. The complaint alleges that the defendants “are independent companies who have agreed with each other to allocate markets into geographic areas in which they agree not to compete.” According to the complaint, this suppresses competition and is a violation of the Sherman Act.

Delta Dental Allocation of Territories Antitrust Complaint

Case Event History

Delta Dental Allocation of Territories Antitrust Complaint

July 1, 2020

This antitrust class action brings suit against Delta Dental Plan Association (DDPA), Delta Dental Insurance Company (DDIC), and a long list of related companies. The complaint alleges that the defendants “are independent companies who have agreed with each other to allocate markets into geographic areas in which they agree not to compete.” According to the complaint, this suppresses competition and is a violation of the Sherman Act.

Delta Dental Allocation of Territories Antitrust Complaint
Tags: Allocation of Customers Territories or the Like, Antitrust