ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS v. UNITED HEALTHCARE SERVICES, INC., et al.

CourtDistrict Court, D. New Jersey
DecidedNovember 25, 2025
Docket3:24-cv-07375
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS v. UNITED HEALTHCARE SERVICES, INC., et al. (ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS v. UNITED HEALTHCARE SERVICES, INC., et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS v. UNITED HEALTHCARE SERVICES, INC., et al., (D.N.J. 2025).

Opinion

NOT FOR PUBLICATION UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS, Plaintiff, Civil Action No. 24-7375 (MAS) (TJB) v. MEMORANDUM OPINION UNITED HEALTHCARE SERVICES, INC., etal., Defendants.

SHIPP, District Judge This matter comes before the Court upon Defendant United HealthCare Services, Inc.’s (“Defendant”) Motion to Dismiss (ECF No. 20) Plaintiff Abira Medical Laboratories, LLC d/b/a Genesis Diagnostic’s (“Plaintiff’) Second Amended Complaint (ECF No. 16). Plaintiff opposed (ECF No, 23), and Defendant replied (ECF No. 24). The Court has carefully considered the parties’ submissions and reaches its decision without oral argument under Local Civil Rule 78.1(b). For the reasons below, Defendant’s Motion to Dismiss is granted. L BACKGROUND A. Factual Background! Plaintiff is a New Jersey limited liability company that “perform[s] clinical laboratory, pharmacy, genetics, additional rehabilitation, and COVID-19 testing services on specimens submitted by medical service providers” (the “Laboratory Testing Services”). (Second Am.

' For the purpose of considering the instant motion, the Court accepts all factual allegations in the Complaint as true. See Phillips v. County of Allegheny, 515 F.3d 224, 228 (3d Cir. 2008).

Compl. (“SAC”) J 6, 12, ECF No. 16.) Defendant “provides health insurance throughout the United States” and has its principal place of business in Edina, Minnesota. (/d. J 7.) At all relevant times, Plaintiff was “an out-of-network provider of laboratory testing services to Defendant’s subscribers/members.” Ud. { 6.) Plaintiff alleges that “requisitions of laboratory testing services that were submitted on behalf of Defendant’s insureds contained an assignment of benefits, which created contractual obligations on part of ... Defendant to pay for the Laboratory Testing Services” that Plaintiff provided. Ud. { 13.) Specifically, the assignments executed by Defendant’s insured included the following: I hereby assign all rights and benefits under my health plan and direct payments be made to Genesis Diagnostics for laboratory services furnished to me by Genesis Diagnostics. I irrevocably designate[,] authorize[,] and appoint Genesis Diagnostics or its assigned affiliates as my true and lawful attorney-in-fact for the purpose of submitting my claims and pursuing any request, disclosure, appeal, litigation[,] or other remedies in accordance with the benefits and rights under my health plan and in accordance with any federal or state laws. Or I hereby authorize my insurance benefits to be paid directly to Genesis for services I received. Or By signing this authorization, I am acknowledging that payment(s) be made on my behalf to Genesis Diagnostics, Inc. for any services provided to me by Genesis Diagnostics, Inc. I also allow the release of any medical information necessary to process this claim. | 14.) Plaintiff attached to its Second Amended Complaint a “spreadsheet setting forth the patients who were rendered Laboratory Testing Services” (“Exhibit 1”) who “executed or should have executed an assignment of benefits with respect to their original requisitions for services[.]” Ud. 15.) Plaintiff claims that through these assignments of benefits, “contractual obligations arose between the Plaintiff and Defendant with respect to each of the patients” identified in Exhibit 1. Ud. § 16.) Plaintiff alleges that Defendant, however, “improperly refused to pay (or underpaid)

Plaintiff millions of dollars for services it rendered to numerous of Defendant’s subscribers and/or members for numerous pretextual reasons” as part of “a long campaign designed to deprive Plaintiff of millions of dollars it is rightfully owed[.]” Ud. ¥§ 4, 17.) B. Procedural Background In June 2024, Plaintiff initially brought this case in the Superior Court of New Jersey, Mercer County, and Defendant removed the case to this Court. (See generally Notice of Removal, ECF No. 1.) Plaintiff filed an Amended Complaint in July 2024. (See generally Am. Compl., ECF No. 7.) Defendant moved to dismiss the Amended Complaint pursuant to Federal Rule of Civil Procedure’ 12(b)(6). (Def.’s Mot. to Dismiss, ECF No. 8.) The Court granted Defendant’s Motion to Dismiss the Amended Complaint, dismissing with prejudice two of the counts and dismissing without prejudice the remaining nine counts. (Order, ECF No. 15.) The Court gave Plaintiff an opportunity to file a second amended complaint. (/d.) On April 30, 2025, Plaintiff filed its Second Amended Complaint alleging four causes of action: (1) a violation of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001, ef seg. (“Count One”); (2) breach of contract (“Count Two”); (3) breach of implied covenant of good faith and fair dealing (“Count Three”); and (4) quantum meruit or unjust enrichment (“Count Four”). (See generally SAC.) Defendant now moves to dismiss the Second Amended Complaint for two reasons: (1) Plaintiff failed to allege it exhausted administrative remedies before bringing its ERISA claim; and (2) Plaintiff fails to state a claim upon which relief can be granted. (See generally Def.’s Moving Br., ECF No. 20-1.) In the alternative, if the Court does not dismiss the Second Amended Complaint in its

* All references to “Rule” or “Rules” hereafter refer to the Federal Rules of Civil Procedure.

entirety, Defendant asks the Court for staged discovery focusing on anti-assignment provisions. (id. at 15-16.) II. LEGAL STANDARD Rule 8(a)(2) “requires only a ‘short and plain statement of the claim showing that the pleader is entitled to relief,’ in order to ‘give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.’” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). A district court conducts a three-part analysis when considering a motion to dismiss under Rule 12(b)(6). See Malleus v. George, 641 F.3d 560, 563 (3d Cir. 2011). First, the court must identify “the elements a plaintiff must plead to state a claim.” Ashcroft v. Igbal, 556 U.S. 662, 675 (2009). Second, the court must identify all of the plaintiffs well-pleaded factual allegations, accept them as true, and “construe the complaint in the light most favorable to the plaintiff.” Fowler □□□ UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009) (citation omitted). The court can discard bare legal conclusions or factually unsupported accusations that merely state the defendant unlawfully harmed the plaintiff. See Igbal, 556 U.S. at 678 (citing Twombly, 550 U.S. at 555). Third, the court must determine whether “the [well-pleaded] facts alleged in the complaint are sufficient to show that the plaintiff has a ‘plausible claim for relief.’” Fowler, 578 F.3d at 211 (quoting Iqbal, 556 U.S. at 679). A facially plausible claim “allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” /d. at 210 (quoting /qbal, 556 U.S. at 678). On a Rule 12(b)(6) motion, the “defendant bears the burden of showing that no claim has been presented.” Hedges v.

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ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS v. UNITED HEALTHCARE SERVICES, INC., et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-dba-genesis-diagnostics-v-united-njd-2025.