Case Details

Year Initiated/Committed

1996

Year Resolved

1996

Settlement Amount

$300,000

Court

Chancery Court of Tennessee, Davidson County

Docket Number

96-2862-III

Lead State

TN

Participating States

TN

Defendant(s)

Tennessee Association of Mental Health Organizations, Association of Mental Health Centers and Tennessee Mental Health Center Corp.

Case Description

State sought damages and injunctive relief, alleging that Defendants, Tennessee Association of Mental Health Organizations, Association of Mental Health Centers and Tennessee Mental Health Center Corporation conspired to set the prices of mental health services which were provided by the members of these organizations. In order to resolve the dispute without further litigation, Defendants were enjoined from negotiating contracts on its members’ behalf with purchasers of mental health services. Further, Defendants were required to pay $150,000 to the Attorney General for investigative costs and attorney’s fees. Defendants also made a cy pres distribution of $150,000 to benefit community health centers.