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Nurses Reach $42M Settlement in Antitrust Class Action Alleging Wage Fixing

This is a settlement for the Antitrust lawsuit.

Detroit, MI: A $42 million settlement has been reached between the parties involved in an antitrust class action pending against eight Detroit area hospitals. The lawsuit, brought by nurses employed at the hospitals, alleges that the hospitals conspired to keep their wages set low.

In the complaint, which represents some 24,000 registered nurses, the Detroit-area hospital systems are accused of conspiring to maintain low wages for the nurses and control competition between hospitals, in violation of the Sherman Act. The nurses assert that as a consequence of these actions, they have been underpaid by hundreds of millions of dollars.

The nurses won class certification in September 2013, but one defendant, VHS sought an appeal. This particular agreement is with the VHS of Michigan Inc, doing business as Detroit Medical Center. Plaintiffs noted in court documents that the if this proposed settlement receives final approval, the total recovery will exceed $90 million. The lawsuit was scheduled to go to court.

The case is Cason-Merenda et al. v. VHS of Michigan Inc. et al., case number 2:06-cv-15601, in the U.S. District Court for the Eastern District of Michigan.

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Published on Sep-14-15


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