Ruggles v. WellPoint, Inc.

272 F.R.D. 320, 2011 U.S. Dist. LEXIS 17310, 2011 WL 709695
District Court, N.D. New York·Decided February 22, 2011·No. No. 1:08-CV-0201(LEK/RFT)·Published·Cited by 7 cases

Opinion

MEMORANDUM-DECISION and ORDER1

LAWRENCE E. KAHN, District Judge.

I. INTRODUCTION

Pending before the Court are Motions seeking the certification and the denial of certification of proposed Rule 23 classes for alleged violations of New York, California, and Illinois wage and hour laws. See Dkt. Nos. 197,198, 200,204. For the reasons that follow, Plaintiffs’ consolidated Motion for class certification (Dkt. No. 204) is denied, and Defendant’s Motions for denial of certification of a New York Rule 23 class (Dkt. No. 197) ; a California Rule 23 class (Dkt. No. 198) ; and an Illinois Rule 23 class (Dkt. No. 200) are granted.

II. BACKGROUND

A. Factual Background

Plaintiffs are all registered nurses (“RNs”), employed, or previously employed by Defendant WellPoint, Inc. (“Defendant” or ‘WellPoint”) in the position of “Utilization Review Nurse,” “Case Management Nurse,” or “Medical Management Nurse.” Am. Compl. (Dkt. No. 166) ¶ 1. WellPoint, one of the nation’s largest health benefits companies, is a complex corporate entity headquartered in Indianapolis, Indiana, which provides health insurance benefits and services to approximately 34 million customers nationwide. Among the services WellPoint provides are “medical management,” “case management,” and “utilization review.”2 [325] Formed in 2004, WellPoint has a corporate presence in California, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia, and Wisconsin. See Ginzinger Deck (Dkt. No. 53-3) ¶¶ 2-4.

WellPoint’s current structure is the result of numerous mergers and acquisitions, some of which are pertinent to the instant Motions. See Ginzinger Deck (Dkt. No. 53-3) ¶¶ 3 — 4; Welker-Finney Deck (Dkt. No. 200-2) ¶¶ 4-6. In 1992, Blue Cross of California created a for-profit entity, WellPoint Health Networks Inc., to operate its managed care business. Blue Cross of California, a managed care program in California, and Blue Cross Life and Health Insurance Company, an insurance program in California, became subsidiaries of WellPoint Health Networks Inc., operating under the trade names Anthem Blue Cross and Anthem Blue Cross Life & Health Insurance Company (collectively “Anthem Blue Cross”). Welker-Finney Deck (Dkt. No. 200-2) ¶¶ 4-6.

UniCare Life & Health Insurance Company (“UniCare”) existed as another subsidiary of WellPoint Health Networks Inc. and in 1995 became the brand name for the parent company’s non-Blue Cross Blue Shield businesses operating outside of California. In early 2000, WellPoint Health Networks Inc. acquired Rush Prudential Health Plazas in Illinois. Id. ¶ 5.

WellPoint, Inc. was formed in November 2004, when WellPoint Health Networks Inc. merged with Anthem, Inc. Ginzinger Deck ¶ 3-4; Welker-Finney Deck (Dkt. No. 200-2) ¶¶ 4-6. Anthem Blue Cross continues to operate in numerous locations throughout California, including Anaheim, Camarillo, Costa Mesa, Fresno, Glendale, Los Angeles, Modesto, Newbury Park, North Hollywood, Oakland, Pomona, Rancho Cordon, Sacramento, San Bernardino, San Diego, San Francisco, San Jose, Santa Barbara, Thousand Oaks, Visalia, Walnut Creek, West Hills, and Woodland Hills; it employs registered nurses in the following job positions: Nurse Case Manager I, Nurse Case Manager II, Nurse Case Manager Senior, Nurse Case Manager Lead, Nurse Medical Management I, Nurse Medical Management II, Nurse Medical Management Senior, and Nurse Medical Management Lead. Welker-Finney Deck (Dkt. No. 200-2) ¶ 7-8. Uni-care continues to operate in a number of locations in Illinois, including: Chicago, Deerfield, Mt. Vernon, Schaumburg, and Westchester; it employs registered nurses in the following job positions: Nurse Case Manager I, Nurse Case Manager II, Nurse Case Manager Senior, Nurse Case Manager Lead, Nurse Medical Management I, Nurse Medical Management II, Nurse Medical Management Senior, Nurse Medical Management Lead, and HMC Nurse Care Manager Senior. Id. ¶¶ 9-10.3

Subsequent to its formation, WellPoint continued expanding its operations, including through its December 2005 acquisition of WellChoice Inc. and WellChoice Inc. subsidiary, Empire Blue Cross Blue Shield (“Empire”). Through that deal, WellPoint acquired Empire’s New York operations, including those in Albany, Brooklyn, Melville, and New York City. Pekrol Deck (Dkt. No. 197-1, Ex. 6) ¶¶ 1, 3. Under Empire, all nurse employees, regardless of their duties, carried the same title, “Case Manager.” Id. ¶ 6. Following Empire’s acquisition by WellPoint, all of Empire’s employees became employees of WellPoint. As part of the restructuring, nurse employees previously designated uniformly as “Case Managers” took on various job titles including “Utilization Review Nurse,” “Medical Management Nurse,” and “Case Manager Nurse.” Id.

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Ruggles v. WellPoint, Inc., 272 F.R.D. 320, 2011 U.S. Dist. LEXIS 17310, 2011 WL 709695 (N.D.N.Y. 2011).

272 F.R.D. 320 (Ruggles v. WellPoint, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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