The long-standing saga of Sidibe v. Sutter may finally be over. The case, initially filed in federal district court for the Northern District of California in September 2012, has a long and convoluted history of complaints, amended complaints, a district court dismissal, an appeals court reversal, a summary judgment of some causes of action, a jury trial, and an appeal, among other steps.
On March 2, 2025, the parties filed a notice in the U.S. District Court for the Northern District of California stating that an agreement in principle to settle all individual and class claims has been reached. The parties must file a motion for preliminary approval within 45 days of this notice. The terms of the agreement have not been released yet.
The case alleged that Sutter Health restricted competition in the healthcare market by using provisions in its contracts with health plans, including “all-or-nothing” and anti-steering terms, to create healthcare monopolies and charge above-market prices, which were passed on to consumers.
In 2022, after nearly ten years of litigation and a month-long trial, a nine-person jury delivered a unanimous verdict finding that Sutter Health did not engage in anticompetitive conduct and did not cause consumers to pay higher prices or premiums as alleged by the class plaintiffs. In Jule 2024, the 9th U.S. Circuit Court of Appeals overturned Sutter Health’s win, saying that the jury that found in favor of Sutter in 2022 was given improper jury instructions, and that the plaintiffs were improperly prevented from presenting relevant evidence, remanding the case for a new trial. The settlement would make that trial unnecessary.
The Source will update you when we receive more information about the settlement.
For more information, see The Source’s litigation page on Sidibe v. Sutter.