This action brings suit against Delta Dental of New York, Inc. (DDNY) by dental providers, alleging that it and its alleged co-conspirators have entered into anti-competitive agreements to allocate territories, in violation of antitrust laws. The complaint names a long list of co-conspirators on its first and second pages, including the Delta Dental Plan Association (DDPA) and its affiliated national entities, Delta Dental Insurance Company and DeltaUSA.
The class for this action is all Delta Dental providers in New York who are not owned or employed by Delta Dental or any of the coconspirators and who provide dental goods or services to Delta Dental insureds under an insurance policy in New York.
The complaint bring suit under the antitrust Sherman Act and the Donnelly Act, “its New York counterpart…” It claims, “DDNY and the Coconspirators are independent companies who have agreed with each other to allocate markets into geographic areas in which they agree not to compete. This contract, combination, or conspiracy is a per se violation of both the Sherman Act and the Donnelly Act.”
The actions the complaint allege are not covert: “The market allocation agreements at issue are reached and implemented through the ‘Delta Dental Plan Association Membership Standards and Guidelines’ and appendices thereto … which are applicable to all member Plans and their affiliates, which set forth limits on their ability to compete.” The complaint quotes an AM Best Research report as saying, “Each Delta Dental plan’s operations are restricted to the state of domicile.”
The complaint alleges, “These restrictions, which have been rigorously followed by member Plans, prevent competition that would otherwise be taking place among the Plans.”
The effect of this, the complaint claims, is “to fix levels of compensation paid to dentists who are members of the Delta Dental provider network at levels below those that would have existed had the Plans been allowed to compete for provider services within each other’s respective territories using the Delta Dental mark.” The complaint claims this injures both the providers and their patients.
The complaint alleges, “Horizontal market allocations between competitors lower output and raise prices because a firm that is free from effective competition will reduce its output below the competitive level, whether directly or indirectly by raising price.”
State dental associations in California and Washington have already brought suit against Delta, brought about, among other things, by a proposed rate cut in 2011 for compensation for dentists at the same time as its compensation for its CEO and other high-level officers increased.
Article Type: LawsuitTopic: Antitrust
Most Recent Case Event
Delta Dental Allocation of Territories New York Antitrust Complaint
July 21, 2020
This action brings suit against Delta Dental of New York, Inc. (DDNY) by dental providers, alleging that it and its alleged co-conspirators have entered into anti-competitive agreements to allocate territories, in violation of antitrust laws. The complaint names a long list of co-conspirators on its first and second pages, including the Delta Dental Plan Association (DDPA) and its affiliated national entities, Delta Dental Insurance Company and DeltaUSA.
Delta Dental Allocation of Territories New York Antitrust ComplaintCase Event History
Delta Dental Allocation of Territories New York Antitrust Complaint
July 21, 2020
This action brings suit against Delta Dental of New York, Inc. (DDNY) by dental providers, alleging that it and its alleged co-conspirators have entered into anti-competitive agreements to allocate territories, in violation of antitrust laws. The complaint names a long list of co-conspirators on its first and second pages, including the Delta Dental Plan Association (DDPA) and its affiliated national entities, Delta Dental Insurance Company and DeltaUSA.
Delta Dental Allocation of Territories New York Antitrust Complaint