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Accretive Health Files Motion To Dismiss Minnesota AG Lawsuit

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4/30/2012 12:33 PM ET

Accretive Health, Inc. (AH: Quote) said Monday that it has filed a motion to dismiss the Minnesota Attorney General's Complaint in federal district court in Minnesota.

The motion denies the Attorney General's claims and requests that the Court dismiss the complaint, in its entirety, with prejudice.

As stated in the motion, the company believes "…the Attorney General's First Amended Complaint includes allegations that are factually baseless and legally indefensible. What is worse is that rather than litigate this case in the courtroom, the Attorney General orchestrated a nationwide media campaign against Accretive Health."

The core of the case involves the criminal theft of a password-protected laptop. Under the federal Health Insurance Portability and Accountability Act and the Minnesota Health Records Act, a company cannot be held liable for the unforeseeable criminal act of a third party stealing a corporate laptop, Accretive Health claimed.

The company further said that in the ten months since the laptop was stolen, there is no evidence that any patient data has been compromised, and hence, in the absence of any injury, the Attorney General lacks legal standing to pursue claims under HIPAA and the Minnesota Health Records Act as a matter of law. Accretive Health noted that it entered into a Consent Order with the Minnesota Department of Commerce on February 3 to address its debt collection practices in Minnesota. Accretive Health continues to work cooperatively with the Department of Commerce. Under fundamental principles of law, the Attorney General is barred from pursuing the identical claims already addressed by a fellow state official, the company asserted.

The company also said the Attorney General's consumer fraud claims are baseless in fact and law.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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