Lawyers are fighting over fees after a $2.8 billion Blue Cross Blue Shield antitrust settlement.

The dispute involves healthcare providers that left the class action. Those providers are now pursuing separate lawsuits against Blue Cross.

Meanwhile, class lawyers want a share of money won in those cases. However, lawyers for the opt-out providers oppose the request.

As a result, a new fee fight has emerged after years of antitrust litigation.

Key Takeaways

• The Blue Cross Blue Shield settlement is worth $2.8 billion.
• The case involves hospitals and other healthcare providers.
• Class lawyers received $657.1 million in fees.
• That award equals 23.47% of the settlement fund.
• Class counsel now seeks a 12.5% fee set-aside.
• The set-aside would cover certain future recoveries.
• Some providers left the class action.
• Those providers are pursuing separate antitrust cases.
• Lawyers for those providers oppose the proposed fee.
• The dispute is before a federal court in Alabama.

Why Are Lawyers Fighting Over Fees?

The dispute centers on providers that left the class action.

Class lawyers say their work helped those providers. Therefore, they want fees if the providers win money in separate cases.

Whatley Kallas leads the class legal team. The firm says its lawyers spent about 375,000 hours on the case.

The firm has also asked U.S. District Judge Anna Manasco to impose a fee set-aside.

The set-aside would cover future settlements or judgments. It would apply to certain opt-out plaintiffs.

However, lawyers for those providers strongly oppose the request.

Blue Cross Settles Major Antitrust Case

The original lawsuit began in 2012.

Hospitals and other healthcare providers accused Blue Cross Blue Shield and some affiliates of violating federal antitrust laws.

The plaintiffs said Blue Cross companies divided the country into exclusive areas. As a result, they claimed competition fell among Blue Cross plans.

The providers also claimed the conduct raised insurance costs. In addition, they said it reduced payments to healthcare providers.

Blue Cross denied wrongdoing. Nevertheless, the company agreed to a $2.8 billion settlement.

The company also agreed to change some business practices.

The court approved the settlement in August 2025.

Some Healthcare Providers Opted Out

The nationwide case involved many healthcare providers.

As many as 3 million potential class members could share in the settlement. However, some providers chose another path.

Instead of staying in the class, they opted out. They then filed or pursued separate lawsuits against Blue Cross.

The providers named in the dispute include Mayo Clinic, AdventHealth, CommonSpirit Health, Massachusetts General and Sutter Health.

Therefore, the current fee fight involves both the class case and separate lawsuits.

Court Approved $657.1 Million in Fees

The Blue Cross settlement has already led to a large fee award.

In 2025, the Alabama federal court approved $657.1 million in attorney fees for class counsel.

That amount equals 23.47% of the $2.8 billion settlement fund.

The court also approved at least $102 million in expenses.

However, class lawyers now seek more fees.

They want a 12.5% set-aside from certain future settlements or judgments.

What Is the 12.5% Fee Set-Aside?

A fee set-aside would reserve part of a future recovery for class lawyers.

Whatley Kallas says the opt-out cases benefited from earlier class work.

Therefore, the firm says class counsel should receive fees from those recoveries.

The class lawyers also point to information from the larger case.

They argue that some opt-out complaints rely on that work.

As a result, they say opt-out lawyers should not receive all of the money from those cases.

Opt-Out Lawyers Reject the Request

Lawyers for the opt-out providers strongly disagree.

They say their clients had a right to leave the class. Therefore, they argue that those providers should be free to bring their own cases.

The opt-out lawyers called the proposed fee plan “litigation piracy.”

They also say the request could interfere with their clients’ choices.

Furthermore, they warn that a court-ordered fee process could create more fights.

For example, lawyers could dispute which firms added value. They could also fight over the proper fee for each firm.

Why Does the Fee Fight Matter?

The Blue Cross case shows how complex legal fees can become.

Large class actions often involve many law firms. They can also last for years.

Therefore, fee disputes may continue after a settlement.

The issue becomes harder when some plaintiffs leave the class.

Class lawyers may say their work helped build later cases. On the other hand, opt-out lawyers may say they built those cases on their own.

As a result, the court’s decision could matter in future class actions.

The ruling could also provide guidance on fees in opt-out cases.

What Happens Next?

The Alabama federal court must decide whether class lawyers can impose the fee set-aside.

The proposed set-aside would cover future recoveries by certain opt-out providers.

First, the court must assess the value of the class lawyers’ work.

Next, it must consider the rights of providers that left the class.

For those providers, the decision could affect how much money they keep.

Meanwhile, class counsel could receive more money beyond the $657.1 million already approved.

The separate antitrust cases also remain important.

The $2.8 billion Blue Cross settlement resolved claims covered by the class action. However, the attorney fee fight continues.

FAQs

What was the Blue Cross Blue Shield settlement worth?

The Blue Cross Blue Shield antitrust settlement was worth $2.8 billion.

It covers claims brought by hospitals and other healthcare providers. However, some providers opted out and pursued separate cases.

How much did class lawyers receive?

The Alabama federal court approved $657.1 million in attorney fees for class counsel in 2025.

The award represented 23.47% of the $2.8 billion settlement fund.

In addition, the court approved at least $102 million in expenses.

What is the proposed 12.5% fee set-aside?

The proposed 12.5% fee set-aside would reserve part of certain future recoveries for class lawyers.

Whatley Kallas says its earlier work helped create value for providers that opted out.

However, lawyers for those providers oppose the request.

Why did some providers opt out?

Some healthcare providers chose not to join the class settlement.

Instead, they pursued separate antitrust claims against Blue Cross.

This can give a provider more control over its case. However, it can also lead to disputes over fees.

Which providers pursued separate cases?

The providers identified in the dispute include Mayo Clinic, AdventHealth, CommonSpirit Health, Massachusetts General and Sutter Health.

They are among the healthcare groups that pursued claims outside the class settlement.

Who represents the class?

Whatley Kallas leads the class legal team involved in the fee dispute.

The firm says its lawyers spent about 375,000 hours on the litigation.

What happens to the separate Blue Cross lawsuits?

The opt-out providers continue to pursue separate litigation.

Meanwhile, the Alabama federal court will consider the proposed fee set-aside.

The court’s decision could affect the parties in this dispute. It could also offer guidance for future class actions.

Why does this case matter to lawyers?

The dispute raises a basic question about legal fees.

Which lawyers should receive fees when several legal teams help produce a recovery?

That question matters to class lawyers, opt-out counsel and their clients.

Furthermore, the outcome could affect how lawyers handle future class settlements.

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