In the United States District Court for the Eastern District of Michigan Southern Division

2:10-cv-14360-DPH-MKM Doc # 329 Filed 04/20/18 Pg 1 of 3 Pg ID 13777 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION THE SHANE GROUP, INC. et al. ) ) Plaintiffs, on behalf of themselves ) and all others similarly situated ) Case No. 2:10-cv-14360-DPH-MKM ) v. ) Judge Denise Page Hood ) Magistrate Judge Mona K. Majzoub BLUE CROSS BLUE SHIELD ) OF MICHIGAN, ) ) Defendant. ) SECOND NOTICE OF FILING PUBLIC VERSION OF BLUE CROSS BLUE SHIELD OF MICHIGAN’S RESPONSE TO PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND APPOINTMENT OF CLASS COUNSEL [DKT. 139] Pursuant to the April 20, 2018 Notice of Supplementing the Public Record Consistent with the Court’s April 17, 2018 Order [Dkt. 322], Defendant Blue Cross Blue Shield of Michigan (BCBSM) now files full versions of briefs previously filed under seal, making public material disclosed in previously-sealed filings that the Parties and Third Parties agree may be unsealed, materials that Third Parties did not move to seal, and materials that the April 17, 2018 Order has ordered unsealed or redacted as listed in Exhibit 1 to the April 20, 2018 Notice of Supplementing the Public Record Consistent With the Court’s April 17, 2018 Order. Attached hereto as Exhibit 1 is Blue Cross Blue Shield of Michigan’s Brief 1 2:10-cv-14360-DPH-MKM Doc # 329 Filed 04/20/18 Pg 2 of 3 Pg ID 13778 in Response to Plaintiffs’ Motion for Class Certification and Appointment of Class Counsel [Dkt. 139] and corresponding exhibits. This 20th day of April. /s/ Todd M. Stenerson Todd M. Stenerson (P51953) Rachel Mossman (Adm. E.D. MI, DC Bar 1016255) SHEARMAN & STERLING LLP 401 9th Street N.W. Washington, DC 20004 (202) 508-8093 [email protected] [email protected] Thomas Van Dusen (P30602) Thomas Rheaume, Jr. (P74422) BODMAN PLC 6th Floor at Ford Field 1901 St. Antoine Street Detroit, Michigan 48226 (313) 259-7777 [email protected] [email protected] Robert A. Phillips (P58496) BLUE CROSS BLUE SHIELD OF MICHIGAN 600 Lafayette East, MC 1925 Detroit, MI 48226 (313) 225-0536 [email protected] Attorneys for Defendant 2 2:10-cv-14360-DPH-MKM Doc # 329 Filed 04/20/18 Pg 3 of 3 Pg ID 13779 CERTIFICATE OF SERVICE I hereby certify that on April 20, 2018, I electronically filed the foregoing paper with the Clerk of the Court using the ECF system, which will send notification of such filing to all parties of record. I further certify that I have caused the foregoing document to be sent by email or U.S. Mail to all individuals or entities who filed objections to the previous Settlement Agreement or, for those individuals or entities represented by counsel, their counsel. /s/ Todd M. Stenerson Todd M. Stenerson 401 9th Street N.W. Washington, DC 20004 (202) 508-8093 [email protected] April 20, 2018 Attorney for Defendant 3 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 1 of 640 Pg ID 13780 EXHIBIT 1 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 2 of 640 Pg ID 13781 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN THE SHANE GROUP, INC. et al. ) ) Plaintiffs, on behalf of themselves ) and all others similarly situated ) Case No. 2:10-cv-14360-DPH-MKM ) v. ) Judge Denise Page Hood ) Magistrate Judge Mona K. Majzoub BLUE CROSS BLUE SHIELD ) OF MICHIGAN, ) ) Defendant. ) DEFENDANT’S RESPONSE TO PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND APPOINTMENT OF CLASS COUNSEL Joseph A. Fink (P13428) Todd M. Stenerson (P51953) Thomas G. McNeill (P36895) D. Bruce Hoffman (Adm. E.D. MI) Michelle L. Alamo (P60684) Neil K. Gilman (Adm. E.D. MI) DICKINSON WRIGHT PLLC David A. Higbee (Adm. E.D. MI) 500 Woodward Avenue, Suite 4000 Ashley Cummings (Adm. E.D. MI) Detroit, Michigan 48226 Jonathan H. Lasken (Adm. E.D. MI) 313-223-3500 HUNTON & WILLIAMS LLP [email protected] 2200 Pennsylvania Ave., NW Washington, DC 20037 Alan N. Harris (P56324) 202-955-1500 G. Christopher Bernard (P57939) [email protected] Jason R. Gourley (P69065) Rebecca D. O’Reilly (P70645) Robert A. Phillips (P58496) Carl Rashid (P66064) BLUE CROSS BLUE SHIELD OF BODMAN PLC MICHIGAN 201 South Division St., Suite 400 600 Lafayette East, MC 1925 Ann Arbor, MI 48104 Detroit, MI 48226 734-930-2482 313-225-0536 [email protected] 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 3 of 640 Pg ID 13782 STATEMENT OF ISSUES PRESENTED I. Should the Court certify the proposed class under Federal Rule of Civil Procedure 23 and appoint co-lead counsel for the proposed class? a. Plaintiffs’ Answer: Yes. b. BCBSM’s Answer: No. i 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 4 of 640 Pg ID 13783 CONTROLLING AUTHORITY Federal Rule of Civil Procedure 23 Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013) Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011) Reeb v. Ohio Dep’t of Rehab. & Corr., 435 F.3d 639 (6th Cir. 2006) Sprague v. General Motors Corp., 133 F.3d 388 (6th Cir. 1998) In re Am. Med. Sys., Inc., 75 F.3d 1069 (6th Cir. 1996) Romberio v. UnumProvident Corp., 385 Fed. App’x 423 (6th Cir. 2009) Rodney v. Northwest Airlines, Inc., 146 Fed. App’x 783 (6th Cir. 2005) Federal Rule of Evidence 702 ii 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 5 of 640 Pg ID 13784 TABLE OF CONTENTS STATEMENT OF ISSUES PRESENTED ............................................................. i CONTROLLING AUTHORITY .......................................................................... ii TABLE OF CONTENTS ....................................................................................... iii INTRODUCTION .................................................................................................... 1 STATEMENT OF FACTS ...................................................................................... 2 I. Plaintiffs’ Initial Class Definition. .................................................................. 2 II. Discovery. .......................................................................................................... 3 III. Plaintiffs’ Revised Class. ................................................................................. 6 a. Plaintiffs’ “Affected” Payors and “Affected” Hospitals. ........................... 8 b. Plaintiffs’ Proposed Class Representatives. ................................................ 9 IV. Plaintiffs’ Expert Testimony. ........................................................................ 11 V. BCBSM’s Expert’s Analysis. ......................................................................... 13 STANDARD OF REVIEW ................................................................................... 14 I. Plaintiffs Cannot Meet the Commonality or Predominance Requirement for the Class They Propose. ........................................................................... 16 a. Plaintiffs’ expert repeatedly admits the lack of common evidence to prove the proposed class members’ claims. .......................................... 17 b. Plaintiffs “common” questions are either incapable of classwide resolution or are generalized questions of the type categorically deemed insufficient. ..................................................................................... 21 c. Plaintiffs do not meet Rule 23(b)(3)’s requirement that common issues predominate. ...................................................................................... 23 d. Plaintiffs cannot manufacture predominance by labeling BCBSM’s conduct a “conspiracy.” ............................................................ 29 II. The Named Plaintiffs’ Claims are Not Typical of Absent Class Members’ iii 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 6 of 640 Pg ID 13785 Claims. ............................................................................................................. 29 III. The Diverging Interests Between Named Plaintiffs and Putative Class Members Prevent Named Plaintiffs From Adequately Representing the Interests of the Entire Class. ......................................................................... 32 IV. Class Certification Is Inappropriate Because Individualized Inquiries Are Necessary To Ascertain Class Members. ..................................................... 34 CONCLUSION ....................................................................................................... 38 iv 2:10-cv-14360-DPH-MKM Doc # 329-1 Filed 04/20/18 Pg 7 of 640 Pg ID 13786 TABLE OF AUTHORITIES Page(s) CASES Achem Products v. Windsor, 521 U.S. 591 (1997) ............................................................................................ 15 Aetna v. Blue Cross Blue Shield of Mich., No. 2:11-cv-15346 (E.D. Mich. Dec. 6, 2011) ............................................... 34, 3 Arlington Video Prod., Inc. v. Fifth Third Bancorp, 515 Fed. App’x 426 (6th Cir. 2013) ............................................................. 17, 33 Beattie v. CenturyTel, Inc., 511 F.3d 554 (6th Cir. 2007) .............................................................................. 30 Broussard v. Meineke Discount Muffler Shops, Inc., 155 F.3d 331 (4th Cir. 1998) .............................................................................. 34 Cash v. Swifton Land Corp., 434 F.2d 569 (6th Cir. 1970) .............................................................................. 15 CBC Companies v. Equifax, Inc., 561 F.3d 569 (6th Cir. 2009) .............................................................................. 25 Cerdant, Inc. v. DHL Express (USA), Inc., No. 2:08-cv-186, 2010 WL 3397501 (S.D. Ohio Aug. 25, 2010) .....................

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