Court ruling casts doubt on ‘sue first, discover second’ business model
A Florida appeals court has pushed back on a company’s application of a little-used legal practice and cast a shadow on the business practices it uses to secure Medicare reimbursements.
The Third District Court of Appeal on Jan. 11 affirmed a trial court’s dismissal of a complaint filed by MSP Recovery Inc., which works to secure reimbursement recovery on Medicare and Medicaid claims. The lawsuit was filed against Coloplast Corp., which manufactures and sells surgical mesh products that MSP contends caused injuries to some Florida residents.
The appeals court affirmed the trial court’s dismissal order of MSP’s second amended complaint but did not comment in detail about the trial court’s finding that MSP failed to state a cause of action for a pure bill of discovery. That’s a rarely used legal action which seeks the disclosure of facts and information known to a defendant. The lower court concluded that it lacked jurisdiction over Coloplast.