Recently, the U.S. District Court for the Eastern District of California ruled in favor of the defendants, three large credit reporting agencies (CRAs), while granting the two plaintiffs, a doctor in a solo practice and a New Jersey-chartered physicians group, the ability to amend their complaint. The plaintiffs alleged the CRAs violated antitrust laws by agreeing not to report medical debt under $500 and delaying the reporting of such debt for 365 days, both of which took away a “valuable tool that medical providers use to incentivize patients to pay their bills.” The defendants argued that the plaintiffs lacked standing to bring the suit, which is a putative class action.  

The court found although the plaintiffs had Article III standing, they failed to demonstrate the more rigorous antitrust standing under the Clayton Act. This led to the dismissal of the federal claim with leave to amend, allowing the plaintiffs to refile an amended class action complaint within 30 days. The decision to grant leave to amend gives the plaintiffs an opportunity to address deficiencies in their claims, such as the direct impact of the CRA’s actions on their business operations. The court also addressed a state law claim under California’s Cartwright Act and declined to exercise supplemental jurisdiction over it, but allowed the plaintiffs to reallege anything if they reasserted their federal claim.