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CONTINENTAL ORTHOPEDIC APPLIANCES, INC. v. HEALTH INS. PLAN OF GREATER NEW YORK

No. CV 95-4541 (ADS).

956 F.Supp. 367 (1997)

CONTINENTAL ORTHOPEDIC APPLIANCES, INC., New York Orthopedic, Stahl Surgical Supply, Inc., United Orthopaedic Appliances, Inc., A-1 Surgical And Medical Supplies, Inc., Archfame, Inc., Ortho Surgical, Inc., J.C. Orthopedic Co., Inc., Day Drug & Surgical, Rocklyn Surgical Supply Company, Orthopedic Treatment Facility, Orthotic Consultants, Inc., James Case Enterprises, Inc., Certified Orthopedic, Prothotic Labs, Elmont Pharmacy & Surgical Supply, Inc., Kings Pharmacy & Surgical, Foot Molds, Inc., and A Personal Touch Garment Corporation, on behalf of themselves and all other similarly situated, Plaintiffs, v. HEALTH INSURANCE PLAN OF GREATER NEW YORK, Advanced Orthopedic Technologies, Inc., and Arimed Orthotics, Prosthetics, and Pedorthics, Inc., Defendants.

United States District Court, E.D. New York.

February 26, 1997.

Attorney(s) appearing for the Case

Law Offices of Scott N. Gelfand, New York City (Scott N. Gelfand, of counsel), for Plaintiffs.

Stroock & Stroock & Lavan, New York City (Bruce H. Schneider, Faith A. Kaminsky, of counsel), for Defendant Health Insurance Plan of New York, Inc.

Herrick, Feinstein, LLP, New York City (Susan T. Dwyer, Joshua F. Scheier, of counsel), for Defendant Advanced Orthopedic Technologies, Inc.

Charles Capetanakis, Brooklyn, NY, for Arimed Orthotics, Prosthetics and Pedorthics, Inc.

MEMORANDUM DECISION AND ORDER

SPATT, District Judge.

This is an antitrust case in a now fertile field for litigation, the Health Maintenance Organization ("HMO") arena. All three defendants move to dismiss all eight claims in the complaint, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, on the grounds that none of the claims state a valid cause of action.

I. BACKGROUND

This lawsuit arises from a decision...

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