Plaintiff Standing for California Competition Lawsuits Widens

Bloomberg Law (July 21, 2023) Nonprofit groups and unions in California will be more emboldened to sue companies that allegedly violated the state’s unfair competition law, after the state Supreme Court clarified how plaintiffs can show standing. The state’s high court ruled July 17 that the California Medical Association has standing to sue Aetna Health of California Inc. for allegedly violating the state’s unfair competition law by issuing threats to doctors who referred patients to out-of-network health providers. Attorneys say the ruling gives more power to plaintiffs seeking to sue under the law, which protects consumers from business fraud, false advertising and other unfair or deceptive business acts. For businesses large and small, the ruling also heightens the risks of litigation brought by a broader type of plaintiffs, such as associations. “Undoubtedly, you are going to see more unfair competition litigation,” said Keith P. Bishop, a partner with Allen Matkins. “I think you are going to see a lot more employers and businesses being sued by trade associations. In this case, you had a doctor’s organization. The next one might be janitors or Teamsters.” Read more (subscription required)