Foley Achieves $4.9 Million Settlement for Wisconsin Schools

Foley represented 141 Wisconsin school districts in a class action lawsuit, recovering $4.9 million in federal funds distributed to WEA Trust under a program enacted as part of the Affordable Care Act.

The suit sought the recovery of federal funds distributed under a program enacted as part of the Affordable Care Act. WEA Trust had obtained several million dollars in the disputed funds by using health care claims data for early retirees of the class member school districts and then refused to pay the funds to school districts that moved their insurance business to WEA Trust’s competitors. Foley was appointed by the court to represent the school districts on a contingency basis.

“This settlement is a great victory for us and for the rest of the school districts who stood firm in believing those funds should be returned to the districts and put to work on behalf of the students and taxpayers,” said Dr. Glenn Schilling, superintendent of the Hartland-Lakeside school district.

“The settlement of this case delivers much-needed money to participating Wisconsin school districts,” explained Shriner. “The case was complex, having been heard in several different state and federal trial and appellate courts since it was filed in early 2012. We were pleased to be able to reach a fair settlement on behalf of the districts.”

Settlement payments for the school districts that were part of the class varied in amounts, depending on the historical amount of early retiree health claims each district had incurred. The largest payout will go to the Oshkosh School District, which will receive $367,766. The School District of Kettle Moraine will receive $216,629, while the Howard Suamico School District will receive $185,215. Nine other school districts will receive individual payments of more than $100,000.

“These are outstanding results and demonstrate a high level of skill and collaboration between our litigation team and the 141 plaintiffs. Every school district involved in this case will receive a payment under the agreement,” added Ludwig.