Bankrupt Prompt Pay Company Sues Lawyer, Firm
A bankrupt company that analyzed data for firms in prompt pay litigation alleged that before bankruptcy, the Austin lawyer and firm that represented it in a sale whisked its assets away for "zero consideration."
August 24, 2015 at 09:40 AM
5 minute read
A bankrupt company that analyzed data for law firms in prompt pay litigation has filed a legal malpractice lawsuit that alleges that before bankruptcy, the company's lawyer and his firm whisked its assets away for free to other companies. S. Michael Dunn and Phillips & Reiter deny all of the allegations.
Before its bankruptcy, Alianza Solutions analyzed data from medical providers' reimbursement claims from insurance companies. It identified late payments to help recover the money and collect other fees under the state's prompt pay law, which requires insurers to pay doctors in a certain time, or face lawsuits and penalties. The company's data analysts used proprietary software to perform the analysis. Alianza's clients were mainly law firms that represented medical professionals who sued insurers for paying late, said the May 28 original petition in Roberts v. Phillips & Reiter, filed in Travis County district court.
The plaintiff in the case on Aug. 20 filed a list of fact and expert witnesses that includes at least eight lawyers or law firms, some well-known: Jackson Walker, The Lanier Law Firm, Provost Umphrey Law Firm and more.
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