Federal Magistrate Judge Awards $1.6 Million In Default Judgment In Fraud Action

Federal Magistrate Judge Awards $1.6 Million In Default Judgment In Fraud Action

CINCINNATI - A federal magistrate judge in Ohio on March 27 recommended entering a default judgment of $1,614,325 in favor of several plaintiffs suffering from cystic fibrosis who had purchased hospital indemnity insurance through membership organizations. The plaintiffs asserted that even though they paid their monthly premiums and submitted valid claims for hospitalization and doctor's visits, the indemnity insurers never paid the claims (Bailey Broadbent, et al., v. Americans for Affordable Healthcare Inc., et al., No. 1:10cv943, S.D. Ohio, Western Div.; 2012 U.S. Dist. LEXIS 41369).

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